US Non-Agricultural Jobs Fall by 23,000, Clouding Fed Rate Hike Prospects

The US Bureau of Labor Statistics reported that non-agricultural jobs fell by 23,000 in July, exceeding market expectations. The decline is part of a larger trend of deteriorating employment since February, which has increased volatility in the labor market.

According to the report, the unemployment rate was 4.1%, lower than the previous month's 4.2%. However, employment declined in local government education and retail sectors, while growth continued in the medical service sector.

The Federal Reserve may reconsider its interest rate hike plans due to the decline in employment. Fed Chairman Kevin Wash has emphasized his willingness to curb inflation, but the market is uncertain about the path of interest rates.

Investment banks are giving mixed forecasts on the Fed's interest rate path this year, with some predicting a rate freeze and others expecting multiple hikes. The probability of raising the FOMC rate in September decreased to 42% according to the Chicago Mercantile Exchange (CME) FedWatch.