The downgraded estimate follows a jobs report for July that was much worse than expected, leading many economists to suggest that the Federal Reserve had waited too long to begin cutting interest rates to support the economy.
In the revisions, new professional and business services jobs, a broad category that includes managers and technical workers, were added to better reflect the current employment landscape.
This doesn't challenge the idea we're still in an expansion, but it does signal we should expect monthly job growth to be more muted and put extra pressure on the Fed to cut rates."
Year-over-year inflation has since plummeted—from 9.1 percent in June 2022 to 2.9 percent—clearing the way for the central bank to begin cutting rates when it next meets in mid-September.
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