U.S. job growth cooled in August. Here's what that means for inflation and interest rates.
CBSN
The labor market is showing signs of cooling, shifting gears after months of strong job creation that fueled soaring inflation and prompted a string of interest rate hikes from the Federal Reserve.
Private employers added 177,000 jobs in August, compared with 371,000 in July, human-resources company ADP said on Wednesday. That's below the 200,000 new jobs that economists had expected ADP to report this month, according to financial data firm FactSet.
The slower job creation could signal that the labor market is returning to "a more sustainable dynamic," noted Javier David, managing editor for business and markets at Axios, and a CBS News contributor. That's important because cooler hiring could put downward pressure on inflation and feed into the Federal Reserve's decision on whether to hike rates again in September or take a breather.
