U.S. job numbers were released Friday, coming in much lower than expected—sending markets on a brief rally in the morning before retreating in the afternoon. In October 2024, the U.S. economy added only 12,000 jobs, far below September’s revised 223,000 and the forecast of 113,000. Strikes, especially at Boeing, and possibly hurricanes, contributed to this slowdown. Healthcare and government sectors grew, while manufacturing saw declines, including a 44,000 drop in transportation equipment. Revisions for August and September reduced job counts by 112,000. The initial market reaction fueled speculation of another significant Fed rate cut; however, given the impact of external factors, two additional similar readings would be necessary to view this as a true reflection of the job market or a recession indicator.

Inflation continued to cool and get closer to the Federal Reserve’s 2% annual target in September, although it doesn't feel like at any restaurant. The personal-consumption expenditure price index rose to 2.1% from a year earlier, the Bureau of Economic Analysis reported. With near-perfect inflation, the Fed will remain more focused on the job market and ensuring maximum employment while tempering inflation. In lay terms, this means it looks like the path for continued rate cuts is pretty likely. That's good news for mortgage rates and borrowing money.

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