US economy adds 162,000 jobs, raising Fed rate hike expectations

In the US, the Labor Department reported that the economy added 162,000 jobs in August 2026, significantly exceeding the expected 56,000. The unemployment rate remained steady at 4.1%, while labor market participation increased. However, the strong job growth raised concerns about potential inflation, leading to expectations of a Federal Reserve interest rate hike at its upcoming meeting. All major US stock indexes closed lower as a result of the market's reaction to the jobs report.