The growth of the US labor market decreased considerably not only last month, but also in May and June, probably giving more fuel to those who ask for federal reserve rates cuts.
Non -agricultural payroll increased 73,000 in July, according to a Friday morning report from the Office of Labor Statistics. That is more than 14,000 in June, but that 14,000 were reviewed very low of the originally reported 147,000. The forecasts of economists for July were 110,000.
The unemployment rate increased to 4.2% versus 4.2% expected and 4.1% in June.
In addition to the great revision of June, May’s originally reported that 144,000 employment growth were reviewed at only 19,000.
Taken together, the growth of employment for the May-Julio period averaged only about 35,000 per month. It is the weakest hiring rhythm since the beginning of the Covid Pandemia in 2020, according to Matthew Boomberg.
In the midst of acute losses during the night, the price of Bitcoin
It increased modestly to $ 115,800 in the minutes after the report.
The reactions in the bonds and the dollar are much stronger. 10 -year treasure yield has fallen 10 basic points to 4.30% and Back Green is lower by almost 1% compared to the euro and YEN.
The Federal Reserve at the beginning of this week left its range of funds from the reference Fed in constant 4.25-4.50%, as expected. President Jerome Powell, however, delivered an aggressive message at his press conference after the meeting, questioning what had been a development consensus that the Central Bank would cut interest rates in its next meeting in September.
The probabilities of a rate cut in September have subsequently dropped to about 40% compared to 75% only one month before, according to CME Fedwatch. It has risen to 55% in the minutes after new data.
It is likely that this morning’s job report should weaken Powell’s hand, since he challenges not only the calls of President Trump for lower interest rates, but now at least two governors of the Fed, Chris Waller and Michelle Bowman, who at the beginning of this week voted to reduce the Fed fund rate.
