The U.S. added 818,000 fewer jobs from the spring of 2023 to the spring of 2024 than previously reported, signaling a turn for the worse in the labor market that could spur the Federal Reserve to cut interest rates more aggressively.
The smaller number of new jobs created gives further impetus for the Fed to cut interest rates in September, perhaps by an even larger amount than Wall Street had been forecasting.“
The Fed will see the revisions as another reason to pull forward plans to reduce interest rates,” said chief economist Bill Adams of Comerica Bank in Dallas.
Source: U.S. job creation slashed by 818,000 and cements case for Fed interest-rate cuts – MarketWatch
