July Employment figures
The Bureau of Labor Statistics (BLS) released the July Employment Situation report this morning. The report states that the economy add 92,000 nonfarm jobs in July – below consensus estimates of 135,000. The Unemployment rate moved up from 4.5% in June to 4.6% in July (rounded down from 4.6x – just a handful of basis points from being rounded up to 4.7%). In any event, the modestly restrictive monetary policy continues to do its work – lowering inflation and slowing the economy. If payroll figures remain weak, and unemployment moves up toward 5%, a FOMC rate cut is very likely.
It’ll be worth noting any changes to the FOMC statement after their meeting next Tuesday August 7th.