#NFPShockSpikesRateCutOdds Weak July NFP Has Changed the Fed Conversation
The latest U.S. jobs report has given markets a major surprise and changed the discussion around Federal Reserve policy.
The U.S. economy unexpectedly lost 23,000 jobs in July, while markets had been expecting job growth. June payrolls were also revised down to just 20,000, showing that the weakness was not limited to one monthly report.
The unemployment rate moved slightly lower to 4.1%, but this number needs some context. The labor-force participation rate also declined, meaning the lower unemployment rate does not ne