Overview

• The U.S. Department of Labor reported that nonfarm payrolls rose by 73,000 in July, falling short of the roughly 110,000 jobs economists had forecast.
• The unemployment rate increased to 4.2 percent from the prior month, signaling a notable cooling in the job market.
• President Trump accused BLS director Erica McEntarfer of manipulating data for partisan ends and directed her immediate dismissal.
• May and June payroll gains were sharply revised down to 19,000 and 14,000 jobs, respectively, intensifying scrutiny of the agency’s accuracy.
• Federal Reserve Chair Jerome Powell had warned of downside risks to the labor market days before the report, and officials are now watching for its impact on interest-rate policy.