Fed’s mouthpiece: August non-farm payrolls may have locked in a rate cut for September

September 5th report, "Fed's mouthpiece" Nick Timiraos: The sharp slowdown in job growth in the U.S. this summer is likely to lead the Federal Reserve to decide to cut interest rates by 25 basis points at its meeting in two weeks. Fed Chairman Powell hinted last month that if future data shows a slowdown in the labor market, the Fed may cut rates, and the August employment report clearly indicated that job growth has significantly slowed since the beginning of the year. Data from the Bureau of Labor Statistics showed that the U.S. added only 22,000 jobs in August, while jobs were lost in June. Another survey indicated that the unemployment rate rose from 4.2% in July to 4.3%. Fed officials had been reluctant to cut rates until recently because inflation has stopped declining. The White House's significant immigration restrictions, cuts to the federal workforce, and substantial tariff increases have disrupted this year's economic outlook, raising concerns about weakening demand and increasing price pressures, which may put the FOMC voters in different directional choices. However, Powell's speech last month helped bridge the divide among the voters.