The US Non-Farm Payroll (NFP) faced a significant decline in July, reporting 73,000 jobs added, well below the anticipated 102,000. Furthermore, the June figures were downgraded from 147,000 to a mere 14,000. The unemployment rate climbed to 4.2 percent, up from 4.1 percent.

This unemployment report clearly indicates that the effects of tariffs are beginning to emerge, negatively impacting the labor market. This situation strengthens the argument for a potential interest rate cut in September, suggesting a slowdown in hiring momentum.

In the aftermath of this economic data release, two Federal Open Market Committee (FOMC) members who previously voted for a rate cut, Christopher Waller and Michelle Bowman, issued a statement advocating for proactive measures in light of the slowing growth and weakening labor market.

They expressed their belief that the current tariff effects are only temporary and suggested that if inflation or employment rebounds more quickly than expected, the Federal Reserve could respond accordingly.

On Friday, the US ISM Manufacturing PMI also fell short of expectations, dropping to 48 in July from a target of 49, marking the fifth consecutive month of decline and signaling a decrease in factory production.

The unexpectedly weak jobs report, particularly for........

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