U.S. payrolls rose 162,000 in August, much more than expected; unemployment rate at 4.1%

The U.S. economy added jobs at a brisk pace in August, reversing a summer slowdown in hiring, while the unemployment rate held steady. Nonfarm payrolls rose a seasonally adjusted 162,000 for the month while the unemployment rate, as expected, held steady at 4.1%, the Bureau of Labor Statistics reported Friday. Economists surveyed by Dow Jones had been looking for a payrolls increase of 53,000. August's total was the strongest monthly gain since March.

Net, net, the labor market is alive and well and generating thousands of new jobs to help keep economic growth squarely in the plus column. The report was consistent with what Federal Reserve officials have called a stable labor market, and likely turns the central bank's focus to next week's reports on consumer and producer prices as the final determinant heading into the interest rate decision in less than two weeks. Stock market futures moved mostly lower after the release while Treasury yields, particularly at the short end where Fed policy has its greatest impact, rose sharply. Following the consensus beat on the report, markets edged toward the possibility of a rate hike for the Fed. Traders were still pricing in about 60% odds of a quarter percentage point increase at the central bank's policy meeting Sept. 15-16, according to the CME Group's FedWatch tool.

An upside surprise in payrolls will likely ramp up concerns about a rate hike, but that outcome is in the hands of next week's inflation numbers. If those come in cooler than expected, the Fed will likely feel comfortable discounting potentially inflationary signals coming out of the labor market. President Donald Trump called the August report a 'great jobs number' and said the Fed should lower rates, not hike. The Fed Board, with its great new leader, must get smart - BE PATRIOTS for a change. High interest rates put the U.S.A. at a very unfair disadvantage, and I won't allow that to happen! The president further threatened to cut off trading with countries with which the U.S. has a deficit unless the Fed cuts. The U.S. has a deficit with more than 90 nations. LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT, which the U.S. Supreme Court, in its ridiculous and very costly Tariff decision, strongly acknowledged 'the President' has an absolute right to do.

Policymakers generally watch the unemployment rate more closely for the health of the labor market, and that has held consistent for the past several years and is actually down 0.2 percentage point from a year ago. There was good news on that front as well, as the jobless level held steady even with a 0.2 percentage point increase in the labor force participation rate, a measure of those either employed or looking for jobs. The household survey, which is used to calculate the unemployment rate, showed an increase of employment totaling 569,000 and a surge of 683,00