A sharp slowdown in US jobs growth precludes the possibility that the Federal Reserve will announce plans this month to begin scaling back its pandemic-era stimulus, economists say, as the spread of the Delta coronavirus variant muddies the economic outlook.
Following very strong payrolls reports in June and July, the US central bank readied for a reduction this year of its $120bn a month asset purchase programme, which it said it will keep in place until it saw “substantial further progress” on its goals of maximum employment and average 2 per cent inflation.
Those gains, coupled with surging US consumer prices that pushed inflation to its highest pace in 13-years, prompted several regional Fed presidents to call for a more immediate adjustment to be announced as early as the September policy meeting.