US Unemployment Rate Rises Again, Cementing Path to Fed Rate Cut
- Nonfarm payrolls rose 114,000 in July, below most estimates
- Traders start to price in more aggressive Fed cut in September
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US hiring slowed markedly in July and the unemployment rate rose to an almost three-year high, raising recession concerns and putting the Federal Reserve solidly on a path to cutting interest rates in September.
Nonfarm payrolls rose by 114,000 — one of the weakest prints since the pandemic — and job growth was revised lower in the prior two months. The unemployment rate unexpectedly climbed for a fourth month to 4.3%, triggering a closely watched recession indicator and hammering stocks.