“Overall, still consistent with an economy experiencing a soft landing rather than plummeting into recession,” economist Paul Ashworth said.
US stocks wavered on Friday after the August jobs report slightly missed economist estimates.
The US economy added 142,000 jobs in August, below the average economist estimate of 164,000. The unemployment rate fell to 4.2% from 4.3%.
The report is viewed as solidifying the prospects of a soft landing in the US economy, according to Capital Economics.
“Overall, still consistent with an economy experiencing a soft landing rather than plummeting into recession”, Paul Ashworth, economist at Capital Economics, said in a note following Friday’s jobs report.
The odds of a big interest rate cut at the Federal Reserve’s September 18 FOMC meeting surged after the jobs report.
According to the CME FedWatch Tool, markets see a 51% chance of the Fed cutting rates by 50 basis points later this month, which was a jump from 40% odds on Thursday.
