Coming for August non -agricultural employment The figure points to the worst levels since the end of 2021. Trump, which has been warned for months about slimming in employment, begged the Fed to reduce interest rates, but hiding the BLS data, making great revisions and prevented the formation of the appropriate environment for the reduction of interest rates. Now weakening in employment has emerged.
US employment report
Manufacturing sector employment decreased by 12 thousand. Average earnings increased only 3.7 %despite the expectation of 3.8 %per year. The labor force participation rate is 62.3 %and unemployment has already increased to 4.3 %. The US Office of Statistics (BLS) announced in August that only 22,000 new employment has occurred, and this figure is the worst of recent years, according to previous six -digit reports.
So clearly employment It weakens and has to download the Fed interest rates. One of the most important details in the report was that the number of job seekers, 27 weeks and unemployed, exceeded 385,000 in a year. The number of those who are not included in the labor force and currently increased by 722 thousand during the year.
The only major increase in the employment front is in the health sector. The layoffs in public, mining, oil and gas sectors are evident. However, even health services remained below the 12 -month average employment.
Fed Interest Discount
It will be announced after 12 days interest rate Create 25bp discount for now. Even the market expectation for 50BP discounts increased to 2 %. This indicates a major change compared to the table before the Powell statements during the Jackson Hole period. In other words, crypto currencies can now start to pricing the return to the interest rate reduction cycle. The only problem is the independence of the FED, as we have stated for 2 months.
Crypto currency The most important thing for bull markets is interest rate cuts, ie monetary relaxation. Corporate demand, reserve move, Trump’s task, regulations, crypto has already grown this year with the effect of many supportive factors. However, in order for all these supportive factors to show the real multiplier effect, the Fed needs to begin to reduce interest rates rapidly.
If the excessive relaxation in employment triggers a 50BP reduction, it can lead to great mobility as it will be an unqualified development for crypto currencies. Powell In May, it will leave the task and the interest rates should be descended as quickly as possible. Then the new president Trump, who is already under the control of Trump, will go to a reduction at the speed he wants.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
