Hey fam, the latest U.S. job data dropped this week and it's hotter than a fresh meme 🥵. Here's the tea ☕ on why analysts now think the Fed might slash interest rates as soon as September.
Job numbers cooling off: In August, unemployment ticked up to 4.3%, the highest since 2019. And private companies added only 54,000 jobs, way below the 68,000 expected and far from July's 106,000.
Market reaction: Stocks stumbled on Wall Street, the dollar and Treasury yields dipped, and gold futures glowed brighter – investors are skittish about slowing growth.
Rate cut bets: According to the CME FedWatch tool, markets now see at least a 25 basis-point cut in September, and some traders even whisper 50 bps. Kalshi's prediction platform is on the same page.
Banks weigh in: Bank of America says the Fed will shift focus from inflation to jobs, eyeing 0.25% cuts in September and December. But if growth really slumps, October might need extra easing, and 2026 could bring bigger cuts.
Political heat 🔥: Over on X, Representative Don Beyer slammed Trump's tariffs, saying, "Inflation is heating up, prices and unemployment are both rising and job growth is weakening sharply. All thanks to Trump's tariffs."
So, amigos, keep your eyes peeled 👀. A Fed rate cut could shake up everything from your student loans to that dream startup. We'll keep you posted!
Reference(s):
U.S. job market weakens, analysts see Fed rate cut likely in September
cgtn.com
