Malibu Real Estate and Malibu Homes for Sale

By Joe Richter (Edited)
Oct. 5 (Bloomberg) -- U.S. employment accelerated in September and revised figures for August showed an unexpected gain, easing recession concerns and making the Federal Reserve less likely to cut interest rates again.

Payrolls grew by 110,000 after an 89,000 increase in the previous month, the Labor Department said today in Washington. The change to the August figure wiped out what had been the first decline in four years, a drop that spurred predictions the six- year expansion would come to end amid the credit-market rout.

Treasury notes fell as traders speculated that the central bank, which reduced borrowing costs by half a point on Sept. 18, will resist lowering them at the next meeting. Analysts said more jobs and rising wages will help consumers weather falling home prices, sustaining the spending that accounts for more than two- thirds of the economy.

``It certainly doesn't look like an economy that's losing momentum,'' said John Ryding, chief U.S. economist at Bear Stearns Cos. in New York. ``The Fed will move to the sidelines or else it'll become much more apparent that the Fed was cutting for financial stability reasons and not the real economy.''

The yield on the benchmark 10-year Treasury note climbed 13 basis points to 4.64 percent at 2:00 p.m. in New York. Futures traders put the chances of a reduction in October at 48 percent, down from 72 percent yesterday, based on prices at the Chicago Board of Trade Stocks rallied.