Weak US jobs data challenge Fed’s cautious stance


A cyclist passes the Federal Reserve headquarters in Washington. — Reuters

WASHINGTON: A weaker-than-expected July jobs report is calling into question the US Federal Reserve’s (Fed) wait-and-see approach to interest-rate cuts, boosting the likelihood of a reduction at the central bank’s next meeting in September.

Data published last Friday by the Bureau of Labour Statistics showed payroll gains slowed to just 35,000 on average over the last three months, marking the slowest pace of hiring since the onset of the pandemic in 2020.

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