Fed faces quandary after jobless rate surges

The Federal Open Market Committee (FOMC) may have to make another rate cut later this month after unemployment shot up at its fastest rate for 22 years.

The US jobless rate soared to 5.5% in May, up from 5% in April - the sharpest surge since 1986.

Economists had expected a small rise to 5.1% and the Dow Jones plummeted at the opening bell, falling by 1.6% in the first half hour of trading.

49,000 people lost their jobs, bringing the total amount unemployed to 861,000 - the highest amount

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