The American economy is worse than thinking with 1.2 million jobs – what this means for the Federal Reserve

With functional growth tanks and economics fluctuation, the Federal Reserve is pressed to start lower interest rates, as markets are now expecting a reduction in each of the remaining three meetings this year.

The work statistics office mentioned on Tuesday that The economy added 911,000 jobs less From what I mentioned earlier for the year that preceded March 2025. The descending reviews since the date of the cutting in this report indicate that the decrease in the growth of salary statements was actually about 1.2 million over the past 16 months.

This is certainly that it will attract the attention of the Federal Open Market Committee when it meets next week and can add a fire to President Donald Trump’s repeated assurances that the central bank is “very late” in making amendments to policy.

“If the federal reserve officials were this data available in the actual time, the policy prices will be less today,” and Andrew Holnenehst, economist at City Group, wrote, referring to BLSMark reviews.

Hollenhorst said that the data “can justify” a decrease in the percentage of the percentage of Jumbo when FOMC issues its decision on September 17. However, it expects a chair Jerome Powell “It will have an easier consensus in building time about lowering prices (a quarter of a point) next week, with signals that price cuts will continue in the upcoming meetings, including possible in October.”

Market expectations have been significantly transformed because the signs of trouble have been built around employment.

Traders are not now 100 % pricing to reduce the Federal Reserve in the next quarter next week, but also allow a slight opportunity to reduce half a point. They now see the discounts firmly in each of the remaining three meetings, according to the CME’s Group Fedwatch tool. The scale uses prices on futures for 30 days of boxes to determine the possibilities of market movements. Just one week ago, the markets were only a modest opportunity for three discounts this year.

However, the report follows the news that The non -agricultural salaries lists rose only 22,000 In August. Moreover, Federal Reserve Survey in New York I found a record low in feelings between workers who believe they could find another job if they lost his current position. Other surveys also showed increasing concerns.

From the White House, the data is equipped with price discounts.

“Just as BLS failed in the American people, Jerome has been late” it was too late ” – which officially ran out of excuses and must reduce rates now,” the White House press secretary at the White House said in a statement.