Recent non-farm employment data revisions highlight a significant slowdown, prompting increased market expectations for a September interest rate cut.
On August 2, Federal Reserve's John Williams highlighted that the U.S. economy added only 73,000 jobs in July, significantly below expectations, with May and June figures also revised down. Following this, the market's expectation for a 25 basis point interest rate cut in September surged to 80.3%. Williams described the labor market as 'moderately cooling' and projected a slowdown in economic growth to around 1% this year, with a possible recovery by 2026.