US economy adds 353,000 jobs in January, exceeding expectations in surprise boom to start 2024

The US economy added 353,000 jobs in January – a huge gain to start 2024.

Surprising job growth in January exceeded economists' expectations. According to FactSet, growth was estimated at 176,500 last month.

It is the latest sign that the economy is still able to shake off the highest interest rates in two decades.

The unemployment rate also remained at 3.7 percent, according to Bureau of Labor Statistics data released Friday, defying expectations of a rise to 3.8 percent.

This marks the 24th consecutive month that the unemployment rate has remained below 4 percent – ​​the nation's longest stretch since the 1960s.

This is despite the fact that headlines in recent weeks have been dominated by high-profile layoffs, including at technology companies Microsoft and PayPal and delivery company UPS.

While the report shows the strength and solidity of the U.S. economy, it also raises questions about how quickly the Federal Reserve could start cutting interest rates.

January's hiring figures come as economists and policymakers are closely watching the direction of the economy in light of possible interest rate cuts this year.

At the latest meeting on Wednesday, Federal Reserve Chairman Jerome Powell said he is encouraged about the economy and the downward movement in inflation, but warned there is still “way to go.”

The Fed voted to keep interest rates steady for the fourth straight time, keeping interest rates between 5.25 and 5.5 percent.

Powell also ruled out the chance of an expected rate cut in March.

Officials confirmed at Wednesday's meeting that interest rates will remain at current levels of between 5.25 and 5.5 percent

Rate traders now predict a 90 percent chance of a cut at the central bank meeting in May, the report said. CME FedWatch tool.

This is a breaking news story. Updates are coming.