The growth of the American job market has slowed considerably not only last month, but also in May and June, probably giving more fuel to those who call for reductions in federal reserve rate.
The non -agricultural payroll increased by 73,000 in July, according to a Friday morning report of the Bureau of Labor Statistics. This is up compared to 14,000 in June, but that 14,000 was significantly revised lower compared to 147,000 originally. The forecasts of economists for July were 110,000.
The unemployment rate increased to 4.2% against 4.2% expected and 4.1% in June.
In addition to the large downward revision until June, the growth of 144,000 jobs behind May was revised at only 19,000.
Overall, employment growth for the May-July period was only on average about 35,000 per month. This is the weakest rhythm of hiring since the start of the pandemic cochem in 2020, according to Matthew Boes from Bloomberg.
In the midst of clear night losses, the price of bitcoin
Rose modestly at $ 115,800 in the minutes that followed the report.
Reactions in bonds and the dollar are much stronger. The 10 -year -old treasure yield fell by 10 base points to 4.30% and the greenback is almost 1% lower against the euro and the yen.
The federal reserve earlier this week left its Fed Fed rate range of stable reference to 4.25-4.50%, as expected. President Jerome Powell, however, delivered a bellicist message during his press conference after the meeting, questioning what had been a development consensus according to which the central bank would reduce interest rates at its next meeting in September.
The chances of a drop in rate in September subsequently dropped to around 40% compared to 75% a month earlier, according to CME Fedwatch. It resuscitated at 55% in the minutes that followed the new data.
The report on this morning jobs is likely to give Powell’s hand a weakening because it not only challenges President Trump’s coherent calls at lower interest rates, but now at least two FED governors – Chris Waller and Michelle Bowman – who earlier this week voted to reduce the federal fund rate.
