Weak Jobs Report for August May Cement Case for Rate Cut

New York, NY, September 5, 2025-The nonfarm payrolls report showed the U.S. added just 22,000 jobs in August, undershooting forecasts, and contracted in June. For last month, the unemployment rate ticked up to 4.3%, matching forecasts, reports the Wall Street Journal.

"U.S. stocks turned lower Friday after a weak jobs report cemented the case for a Federal Reserve rate cut at the central bank's policy meeting ending Sept. 17.

“Investors have already ramped up wagers that the Fed will resume cutting interest rates, helping push stocks to record highs. Traders moved early Friday to price in a quarter-point mid-September cut, with an outside chance of a half-point reduction. Bond yields declined sharply.

“Any easing of policy this month would mark the Fed’s first cut since December, and would follow months of pressure from Trump on Chair Jerome Powell.

“It is the first jobs report since President Trump fired the head of the Bureau of Labor Statistics, saying data showing slowing growth was manipulated.”