Nonfarm payrolls rose by just 73,000 in July, showing minimal change for the third straight month, according to the U.S. Bureau of Labor Statistics. The unemployment rate held steady at 4.2 percent, with 7.2 million people unemployed. Since May 2024, the rate has hovered in a narrow range between 4.0 percent and 4.2 percent.
Despite the subdued headline numbers, several senior Federal Reserve officials described the labor market as “solid.” New York Fed President John Williams acknowledged the slowdown, saying, “We’re definitely seeing a slowing of job growth,” in an interview with the Wall Street Journal. He added that while he's open to future rate cuts, controlling inflation remains a priority.
Economists and strategists are beginning to recalibrate their expectations in light of the data.
“We still expect the Fed to cut rates this year, though likely less than markets have been pricing in,” said Scott Wren, senior global market strate
