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SHIB, XRP, ADA Take Hit Due to Blockbuster Jobs Report

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Fri, 5/08/2022 - 13:52
SHIB, XRP, ADA Take Hit Due to Blockbuster Jobs Report
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The U.S. Labor Department has shocked markets with a blockbuster jobs report showing unexpectedly strong growth.

The country's economy added a staggering 528,000 jobs, which is well above the consensus forecast of 258,000 new positions.

Bitcoin fell below the $23,000 level after rising sharply in the run-up to the report. XRP, Shiba Inu (SHIB), Solana (SOL) and Cardano (ADA) also dipped lower.

It's a boom, not a recession

Some market participants expected that the data would surprise to the downside. A deteriorating jobs market would have forced the U.S. Federal Reserve to reverse its hawkish stance and slow the pace of rate hikes.

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However, the massive jobs surprise will likely embolden the Fed to pursue an even more aggressive policy in order to tame inflation.

The unemployment rate is now at only 3.5%, dropping to a 50-year low that came right on the cusp of the pandemic in 2020.

Jobs
Image by @ChuckMik

The muscle-flexing labor market strongly argues against the narrative that the U.S. economy has entered a recession in spite of two consecutive quarters of negative GDP growth.

Expect more rate hikes

The fresh data gives the Fed a lot of wiggle room on rates as it is attempting to pull off a soft landing.

As reported by U.Today, the central bank hiked the benchmark interest rate by another 75 basis points in late July.

During a recent CNBC interview, St. Louis Fed President James Bullard said that the rate would increase to the range of 3.75%-4% by the end of December, the highest level since January 2008.

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