U.S. employment slows sharply, supporting Fed rate cut prospects

According to Jinshi Data on July 5, today's latest data highlights that the US labor market is gradually cooling, which will support expectations of interest rate cuts later this year. The data is consistent with other employment reports this week, showing a sharp decline in job openings this year and an increase in the number of people applying for unemployment benefits. The continued slowdown in employment, coupled with the recent slowdown in inflation, supports the bets of Federal Reserve policymakers that interest rates will be cut as early as September. This employment report is the last report before Federal Reserve officials meet later this month. The market currently expects the Federal Reserve to cut interest rates twice this year.

Today, the seasonally adjusted non-farm payrolls in the United States in June were 206,000, higher than market expectations, but slightly lower than the previous month's data. The US unemployment rate in June was 4.1%, the highest since November 2021.