Overview

• The Labor Department reported the U.S. added only 73,000 jobs in July, well below the 110,000 forecast, and revised May–June figures down by a combined 258,000 jobs.
• Traders using the CME FedWatch Tool now assign more than a 90% probability to a 25-basis-point rate cut at the Fed’s September 17 meeting.
• Governors Michelle Bowman and Christopher Waller dissented at the July FOMC meeting, marking the first policy split among Fed officials in over 30 years.
• Chair Jerome Powell said on August 5 that the Fed is in position to respond if employment deteriorates further or if inflation rises.
• President Trump accused the BLS of issuing “rigged” data and fired Commissioner Erika McEntarfer, raising concerns about political influence on independent economic reporting.