Fed's Employment Data Sparks Looser Policy Fears

The latest US employment data released by the Federal Reserve has shown a significant decline in hiring momentum. The July 2026 jobs report revealed that non-farm payrolls dropped by 23,000 jobs, missing expectations of an 85,000 gain.

This unexpected downturn was compounded by heavy historical revisions to previous reports, with May's numbers revised down by 66,000 and June's numbers cut by 37,000. The three-month moving average for job growth sits at a meager 20,000 per month.

Bryan Perry, editor of Cash Machine, believes that the data leaves little choice but to lean toward looser monetary policy to stave off further labor market deterioration. This would involve lower interest rates and potentially more money being injected into the economy.