US Economy Loses Jobs in July as Inflation Reaches Three-Year High
The US economy experienced an unexpected decline in July, shedding 23,000 jobs according to the federal government's monthly jobs report. This marks a decrease from June's addition of 57,000 jobs. The unemployment rate fell slightly from 4.2% in June to 4.1% in July.
The Iran war has driven up fuel prices and increased supply-chain costs for various goods, resulting in inflation reaching a three-year high in May. A preliminary peace agreement in June provided some relief, but recent on-again, off-again fighting caused crude prices to rise again.
Despite the resilient labor market, investors peg the odds of an interest rate hike at about 56% according to the CME Group's FedWatch Tool. The Federal Reserve opted to hold interest rates steady last week, but central bankers appeared divided over the move with three members voting in favor of a rate hike.