How July's soft jobs data could trigger a series of rate cuts

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How July's soft jobs data could trigger a series of rate cuts
Marc PintoChief EconomistJoe Brusuelas
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The July jobs report missed expectations, with only 114,000 jobs created, falling short of the 175,000 forecasted. RSM chief economist Joe Brusuelas, and...

The July jobs report missed expectations, with only 114,000 jobs created, falling short of the 175,000 forecasted. RSM chief economist Joe Brusuelas , and Janus Henderson Investors head of Americas equities Marc Pinto join Morning Brief to discuss what this report means for potential Federal Reserve rate cuts .

And I think going in one of the real risks or one of the real concerns here from the street is that we were going to see a dramatic drop.Well, it's, um it's definitely a weaker number than people expected. And and you just mentioned that we 200,000 jobs per month just to keep the unemployment rate stabilised.Right now, we're averaging about 100 6,970,000 jobs over the last three months.

I think we can begin talking about the possibility, if not probability, of 75 basis points of cuts this year.That's gonna be scored as a 4.3 because 420,000 additional people entered the labour force.The unemployment rate's not going up necessarily because we've seen a lot of layoffs. You can see that we got a little bit of a disappointment in terms of how many people were hired by the state governments.So there's a lot on the table, but I think the primary takeaway is labour markets normalising.Even if you get numbers below that, you're gonna continue to see that number that unemployment rate increase.We were one of the ones calling for a July rate cut.

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