The latest U.S. employment data has shocked the market. Originally, 750,000 new jobs were expected, but the actual number was only 220,000, far below expectations. This astonishing gap has completely changed the market's expectations for the Fed's monetary policy.
Analysts point out that such weak employment data suggests that the US economy may be facing greater downside pressure. In this case, the Fed will likely have to reconsider its monetary policy stance. Currently, the market's focus has shifted from 'whether to cut rates in September' to 'whether to cut rates by 25 basis points or 50 basis points in September'.
This sudden situation also highlights the importance of the labor market for the overall health of the economy. If job growth continues to remain sluggish, it could trigger a chain reaction affecting consumer spending and economic growth. Therefore, the employment data in the coming months will be a key indicator in determining the direction of the Fed's policy.
Regardless, the huge deviation in this non-farm payroll data once again proves that the uncertainty of economic forecasting remains high, and both investors and policymakers need to stay vigilant and adjust their strategies at any time to respond to potential economic changes.
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The latest U.S. employment data has shocked the market. Originally, 750,000 new jobs were expected, but the actual number was only 220,000, far below expectations. This astonishing gap has completely changed the market's expectations for the Fed's monetary policy.
Analysts point out that such weak employment data suggests that the US economy may be facing greater downside pressure. In this case, the Fed will likely have to reconsider its monetary policy stance. Currently, the market's focus has shifted from 'whether to cut rates in September' to 'whether to cut rates by 25 basis points or 50 basis points in September'.
This sudden situation also highlights the importance of the labor market for the overall health of the economy. If job growth continues to remain sluggish, it could trigger a chain reaction affecting consumer spending and economic growth. Therefore, the employment data in the coming months will be a key indicator in determining the direction of the Fed's policy.
Regardless, the huge deviation in this non-farm payroll data once again proves that the uncertainty of economic forecasting remains high, and both investors and policymakers need to stay vigilant and adjust their strategies at any time to respond to potential economic changes.