US jobs surge casts doubt over interest rate cuts

Hiring in the US surged unexpectedly last month, continuing to defy predictions of a slowdown while raising fresh questions about when interest rates will fall.

The US Labour Department said employers added 272,000 jobs in May, above expectations of 185,000 new roles.

The larger-than-expected gain emerged despite the highest borrowing costs in more than 20 years, which analysts have been expecting to weigh on the economy.

The US central bank has raised interest rates sharply since 2022 to fight inflation, which measures the pace of price rises.

The Fed has cited the strength in employment as a sign that the economy can handle the current rates.

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