Headline nonfarm payrolls rose just 114k, significantly below the 'breakeven' pace, reflecting a cooling labor market.
Unemployment unexpectedly surged to 4.3%, triggering the 'Sahm Rule' recession indicator, likely due to an increase in labor force participation.
Earnings growth decreases to 0.2% MoM and 3.6% YoY, indicating a slow easing in employment conditions, supporting FOMC's confidence in inflation target.
FOMC likely to cut 25bp in September, not deterred by current market overpricing of 4 Fed cuts this year, aiming for a gradual normalization of policy.
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