Fed September Rate Hike Doubted After July Jobs Loss
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- Economists say not to bet on the Federal Reserve hiking interest rates in September, a reversal from earlier expectations that had priced in a rate increase.
- The U.S. economy unexpectedly lost 23,000 jobs in July, a shift multiple outlets characterize as the labor market moving into reverse.
Why it matters: The 23,000-job loss in July marks an unexpected reversal for the U.S. labor market and directly undercuts the case for the September rate hike economists had been anticipating — a potential pivot from the Fed's tightening posture based on a single weaker-than-expected data point.
