September Fed Meeting Takes Center Stage as Strong Jobs Report Sways Market Expectations
US employers added 162,000 jobs in August, exceeding economists' expectations of around 65,000. This strong labor market data has put pressure on the Federal Reserve to hold off on rate cuts, with traders repricing their expectations ahead of the September 15-16 meeting.
The reaction was immediate: Bitcoin (BTC) slid from above $81,000 into a range spanning the high-$78,000s to low-$80,000s. This repricing reflects market expectations rather than a policy decision, but it can influence risk assets before the Federal Open Market Committee delivers its verdict.
Donald Trump weighed in on the situation via Truth Social, pushing back against Fed Chair Warsh's rate hike signal and calling for lower interest rates. However, the market responded by increasing expectations that the Fed could raise rates rather than cut them.