Recent labor market figures have intensified concerns about the health of the US economy, reinforcing speculation that the Federal Reserve may begin easing monetary policy sooner rather than later. Only 22,000 new jobs were created in August, a figure well below expectations and signaling potential softness in employment trends. n nAs a result, financial markets now anticipate a 25-basis-point reduction in interest rates during the Fed’s upcoming meeting on September 16–17. Derivatives pricing also reflects growing confidence in the possibility of three rate reductions by the end of the year, up from earlier projections. n nThe subdued hiring pace suggests that economic momentum may be waning, prompting renewed debate over the central bank’s policy trajectory. With inflation pressures moderating and labor demand cooling, policymakers could find greater justification for a more accommodative stance. n— news from Bloomberg
— News Original —nCharting the Global Economy: Weak US Jobs Data to Prod Fed Rate CutsnDisappointing employment data validated fears that the US labor market may be on the brink of a downturn and lifted expectations for how much the Federal Reserve will lower interest rates this year. n nAfter a paltry 22,000 jobs were added in August, investors fully priced in a quarter-point rate reduction at the Fed’s Sept. 16-17 policy meeting. Odds also edged up for a total of three rate cuts this year, according to futures contracts.