Friday's labour market report failed to clarify the anticipated rate cut magnitude, leading to uncertainty and potential short-term headwinds for risk assets.
The US economy added 142k jobs in August, close to the 165k estimate, but a downgrading revision of 86k in prior jobs was disheartening.
Unemployment decreased by 0.1 percentage points to 4.2%, with a notable increase in earnings at 0.4% MoM, reminding us of persistent inflation pressures.
Fed officials indicated the need for rate cuts but refrained from committing to the size, creating uncertainty and a negative impact on risk asset dynamics.
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