US Jobs Report Could Force Fed’s Hand on Rates

NEW YORK (AP) — Wall Street is bracing for a critical week of data on the U.S. jobs market, with a key government report due Friday that could shape the Federal Reserve’s next move. On Tuesday, the government releases its July report on job openings and labor turnover. That data shows how many positions are unfilled in specific industries and tracks layoffs and workers who quit. The main event comes Friday with the August monthly employment report. It will detail job growth, unemployment, and public sector hiring across the broader economy. The July report showed an unexpected stall in hiring. Until recently, employment had been a rare bright spot, holding steady even as high inflation squeezed businesses and households and consumer confidence slipped. Now, a weakening jobs market puts the Fed in a bind. The central bank has a “dual mandate” to control inflation and support employment. Its main tool is the benchmark interest rate. Raising rates to fight stubbornly high inflation could hurt hiring further. Cutting rates to boost jobs could make inflation worse. The Fed has kept rates unchanged for now. It is watching the impact of the U.S. war with Iran, which has pushed up crude oil prices and made gasoline and shipped goods more expensive. That adds to the pressure from an ongoing U.S. trade war that has also raised costs on many products.