Shafaqna English- In an unexpected turn, the U.S. economy experienced a net loss of jobs during July, while employment gains from the previous two months were also revised significantly downward. These developments have collectively dampened market expectations that the Federal Reserve would proceed with an interest rate hike at its upcoming meeting next month.
The Labor Department’s closely watched employment data released on Friday(7 Aug 2026) painted a mixed picture. On the surface, the unemployment rate improved slightly, falling to 4.1% from June’s 4.2%. However, this decline was driven not by increased hiring but by a massive outflow of 264,000 individuals from the labor pool, which pushed the participation rate to a near-5.5-year trough of 61.4% and weighed on the pace of job creation.
Warsh wanted silence, markets shout