But most of that increase had occurred by last fall. To take one example: Mortgage rates have nearly doubled since the Fed began raising borrowing costs 15 months ago. Industries that are particularly sensitive to higher borrowing costs - such as housing and car sales - appear to have adjusted to the Fed’s higher rates. Several factors, though, are countering those headwinds and helping perpetuate hiring, which typically boosts consumer spending and propels the economy. The economy has been beset by high interest rates, elevated inflation and nagging worries about a possible recession resulting from the Fed’s aggressive efforts to quell price increases. “It’s a resilient labor market - not too hot, not too cool.” “This is kind of a Goldilocks report,” said Julia Coronado, president of MacroPolicy Perspectives, an economic research firm. Yet there were also signals in Friday’s government report that the job market is cooling to a more sustainable pace of growth - a trend that, if it continues, could reassure the Fed that its rate hikes are reducing inflation pressures without derailing the economy. The latest sign of economic strength makes it all but certain that the Federal Reserve will resume its interest rate hikes later this month after having ended a streak of 10 rate increases that were intended to curb high inflation. And it amounted to further evidence of an economy that has defied persistent forecasts of a recession. Yet it was still a healthy increase, enough to reduce the unemployment rate from 3.7% to 3.6%, barely above a half-century low. The pace of hiring by businesses and government agencies in June - 209,000 added jobs - was the smallest monthly gain in 2 1/2 years. WASHINGTON (AP) - Another month, another solid gain for America’s job market.
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