Atlanta Fed President Bostic acknowledged this change, noting that the data warrants a reassessment of Fed policy—shifting the emphasis from inflation risks alone to a more balanced view that includes growing concerns about the labor market. The report clearly points to a loss of momentum in job growth, signaling a broader slowdown in employment conditions.
Key Data Highlights
The unemployment rate climbed to 4.2%, up from 4.1% in June. That is still relatively low
Implications:
Softening employment data, combined with substantial downward revisions to prior months, has significantly strengthened the case for a Fed rate cut—potentially as early as September. Market estimates now place the probability of a September cut at 90%. Many economists view the latest jobs report as a decisive turning point, suggesting that if inflation remains contained, the Fed has a clearer path to easing.
Before the report, Trump posted on Truth Social:
Notably, there is a growing call for the Federal Reserve Board to assert greater control over policy direction. The two dissenting votes on Wednesday—Governors Michelle Bowman and Christopher Waller—are both members of the Fed’s Board of Governors and were appointed by former President Trump during his previous term. Their opposition underscores the internal divisions within the Board itself.
Philip N. Jefferson — Vice Chair. Appointed in 2022 and began serving as Vice Chair in September 2023. Appointed by President Joe Biden
Lisa D. Cook — Governor. Appointed in May 2022; the first African American woman on the Board.Appointed by President Joe Biden
Fed governors are not supposed to be politically motivated, but most everyone has a bias.
Susan M. Collins – President, Boston Fed
Alberto G. Musalem – President, St. Louis Fed
Federal Reserve Bank presidents are not appointed by the U.S. President. Instead, they are selected through a private search process led by each regional Fed Bank’s board of directors and then approved by the Federal Reserve Board of Governors.
Treasury yields have dropped sharply—10-year yields fell nearly 13 basis points and 2-year yields fell more than 23 bps as the odds of a Fed rate cut increase into the 90% range for September another rate cut now the odds on for December.
Gold spiked nearly 2%, driven by both softer-than-expected jobs data and renewed trade tension fears .
The NASDAQ index fell briefly below the 200-hour moving average, but quickly rebounded. The last few minutes have seen another run to the downside (Trump positions to nuclear subs in response to inflammatory remarks from Russia's Medvedev) . The price is currently at 20627. The 200 hour moving average is at 20617.69.
Job growth is heavily tilted toward healthcare and social assistance (55,000 and 18,000 respectively), while federal employment fell by 12,000 jobs
A decline in labor force participation to 62.2% also masked some signs of labor market strain. Looking at the good sector, total jobs fell by -13,000. Looking at the service sector, 96,000 jobs were created this month led by private education and health services added 79,000 of the 96,000. That makes sense given the aging of the US population. Apart from that sector job growth was minimal.
Goods-producing: -13k
Construction: +2k
Durable goods: -11k
Nondurable goods: -2.4k
Wholesale trade: -7.8k
Transportation and warehousing: +3.6k
Information: -2k
Professional and business services: -14k
Private education and health services: +79k
Leisure and hospitality: +9k
Government: -10k
Economic headwinds from tariffs, immigration policy, and aging demographics are amplifying hiring pressures, especially in vulnerable sectors like manufacturing and construction .
Summary
The July jobs report significantly softens the narrative around the U.S. labor market. With employment growth barely exceeding population trends and inflation still sticky, the data buttresses the case for a near‑term rate cut, while signaling a cooling economy. This builds a clearer path for policymakers and markets, though risks remain from tariffs and sector-specific sluggishness.
This article was written by Greg Michalowski at investinglive.com.Hence then, the article about uncertainty looms u s jobs report shifts risk to economy toward unemployment was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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