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2025-08-01 20:40:49
US job growth unexpectedly slowed sharply, reopening the Fed's interest rate cut window? ⑴ US job growth slowed sharply in July, with non-farm payrolls increasing by only 73,000 jobs, far below the expected 110,000. ⑵ Furthermore, June data was significantly revised downward to show an increase of only 14,000 jobs, rather than the previously reported 147,000. ⑶ Official data showed that the unemployment rate rose to 4.2% from 4.1% in June. ⑷ The sharp cooling of the job market stands in stark contrast to Fed Chairman Powell's previous description of a "balanced" labor market and suggests downside risks. ⑸ This weak data may prompt the Fed to reconsider its monetary policy stance. ⑹ Although the market's previously expected September rate cut has been postponed to October, some economists believe the Fed could still cut rates in September if revisions to next month's employment data show a significant decline in employment levels. ⑺ Furthermore, the uncertainty created by Trump's tariff rhetoric, as well as the reduced labor supply caused by tightening immigration policies and an aging population, have also impacted the job market.
