“US Adds Just 73k Jobs in July; Major Downward Revisions Raise Odds of A Fed Rate Cut as Unemployment Hits 4.2% and Market Confidentnce Weakens.”, – WRITE: www.fxempire.com
Fed Chair Jerome Powell Is Facing Intensifying Pressure, Particularly from President Trump, Who Once Again Attacked Powell Online, Calling Him A “Stubborn Moron” and URGING IMMEDIATE Rate. While the Central Bank Has So Far Held Itchmark Rate Stedy, Economic Data Like This Could Shift The Fomc’s Stance in the Coming Weeks.
Sectors Show Uneven Performance – Health Care Leads, Government Contracts July’s Gaves Were Heavly Concentrated in the Health Care Sector, WHICH Added 55,000 Jobs, Continuing ITS Post-Covid Expansion. Social Assistance Also Contributed 18,000 Jobs. However, Federal Government Employment Declined by 12,000 and is Now Down 84,000 Since Its January Peak. The Retrenchment is Partally Attributed to Cost-Cutting Efforts Initated by Elon Musk’s Department of Government Efficiency.
Wage Growth Remoned Modest, with Average Hourly Earnings Up 0.3% MONTH-OVER-MONTH. The 3.9% Year-Over-Yoar Gain Slightly Beat Expectations But Failed to Offset The Broader Weakness in Hiring.
Market Outlook: Bearish Labor Data StrengThens Case for Fed Action The Latest Jobs Report Reports of Signs of A Deteriorating Labor Market, with Limited Sectoral Strength and A Broad-Based Cooling in Hiring Momentum. For Traders, this adds weight to a bearish short-term View on Yields and the Dollar, While Increase The Odds of A Fed Rate Cut in September. Equities May Stay Under Pressure Until Cleerr Signs of Monetary Policy Support or Labor Market Stabilization Emerge.