On August 1, 2025, in Enkinitas, California, a “employment” sign appears outside of the Target Store after US employment growth slowed in July.
Mike Blake | Reuters
At the moment in the US economy, employment reports seem to be more of an injury if interest rates are higher than normal and are still above the Federal Reserve 2% target. Like gouache, I want it to be bad enough to draw sympathy from others, but it’s not so serious that it attracts flesh and exposes bones.
The August employment report appeared to be the latter. The new salary is now more than a third below expectations. On the bright side, unemployment rate rose to 4.3% from 4.2% the previous month, mainly due to an increase in the size of the workforce 436,000. This means that more job seekers have caused an increase in unemployment, not layoffs.
That said, the wounds in the US economy were very serious, and traders expected the Federal Reserve to quickly manage friendly, loving care. According to the CME FedWatch tool, as of Sunday Night Stateside, the futures market is priced at the Federal Reserve September meeting with an 8% chance of a single 50 basis point rate reduction. The probability was 0% a month ago. And all reductions of 25 basis points are guaranteed.
Such a healing outlook by the central bank has helped investors to embrace the pain of employment reporting in the store. The major US index fell on Friday, but only moderately. The Nasdaq composite closed around the flatline, supported by the strong bones of the high-tech sector.
If the Fed cuts its fees later this month – a move that almost certainly makes it – it will stitch just in time to save investors to more than one dime.
Things you need to know today
Our employment report for August. Non-farm salaries in the United States increased 22,000 that month, below the 75,000 expected by a Dow Jones survey. The number of jobs in July has been revised, but the figures for June have been revised, bringing 13,000 jobs to net losses.
If customs duties are deemed illegal, a massive refund will be issued, Bessent warns. In an interview Sunday, U.S. Treasury Secretary Scott Bescent said if the Supreme Court attacks tariffs, “we will have to give a refund for about half of the tariffs that are terrible for the Treasury.”
Trump is threatening to launch a trade investigation to override EU fines. The US president issued the threat after the European Union slapped a $3.45 billion penalty. Google Due to the anti-competitive practices of the company.
The US market finished the week with greens. However, all three major indices fell on Friday after touching on daytime highs early in the session. Similarly, pan-Europeans Stoxx 600 It gave up on previous profits and ended a 0.2% lower day.
(Pro) Inflation data on radar this week. Following the August employment report, the focus is on price indexes for US producers and consumers. They provide indications as to how the Fed can balance the balance between maximum employment and stable inflation twin missions.
And finally…
Shoppers walk through the Galleria Vittorio Emanuele II Shopping Gallery.
Photo Alliance | Getty Images
Why Italy is defeating the Clamp Down of the Super Affluent
Italy is a perennial favourite of rich and famous people, attracting a new wave of ultra-rich arrivals looking to take advantage of investor-friendly environments, a prosperous real estate market and low tax systems.
Italy is bumping into trends, as many other countries round out the ultra-rich people. Its adjustable flat tax regime attracted a horde of large spenders attracted by the luxurious life and the increasingly bustling business scene of Milan.
– Karen Gilchrist
