
The softening job figures in the U.S. may prompt the Federal Reserve to implement a rate cut during their meeting set for mid-September.
Key Takeaways:
- Nonfarm payrolls saw an addition of 22,000 jobs in August, falling short of the anticipated 75,000.
- The unemployment rate edged up to 4.3%, aligning with predictions.
- The weak data supports the case for a Fed rate cut, although bitcoin has reacted with only slight movement.
U.S. Employment Figures
In August, the Bureau of Labor Statistics reported a modest increase of 22,000 jobs, a sharp contrast to July’s revised figure of 79,000 (initially noted as 73,000). This disappointing trend may solidify expectations for a potential reduction of rates during the Federal Reserve’s meeting on September 16-17.
The unemployment rate increased to 4.3%, up from 4.2% in July, reflecting the current trends in the labor market. Average hourly wage rates did rise by 0.3% for the month and 3.7% year-over-year.
Following the report, bitcoin briefly rose by about $500, reaching $112,800 while gold hit a new high of $3,644 per ounce.
Despite some signs of strength, the imminent decisions of the Fed may usher in discussions around a possible 50 basis point rate cut, diverging from the anticipated 25 basis point reduction.