Non-farm payroll data validates Waller and Bowman's rationale for rate cuts: Labor market shows signs of weakness

On August 1st, US labor force data supported calls for monetary easing, with US Treasury yields and the dollar falling together. At the same time, previous data was significantly revised downwards: the number of new jobs added in May was revised down from 144,000 to 19,000, and the number of new jobs added in June was revised down from 147,000 to 14,000.

Before the release of the employment report, Fed Governors Waller and Bowman, who held dissenting views, stated that there were signs of weakness in the labor market. The employment data caused a sharp drop. (Golden Ten)