What does a weaker job market mean for the Fed?

The July jobs report showed weaker-than-expected growth, with only 73,000 new jobs added—well below the 104,000 forecast. May and June figures were also revised down sharply, bringing the 3-month average to just 35,000, far below historical norms.
Construction worker in safety gear handling equipment on an active site.

The July Jobs Report: What you need to know.

This slowdown suggests the labor market is softer than previously thought, increasing the likelihood the Fed may shift focus from inflation control to economic support—potentially leading to rate cuts later this year.

While such reports can cause short-term market swings, long-term investors should focus on the broader economic outlook and the Fed’s efforts to maintain stable growth.

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