Is the Labor Market Weak Enough to Warrant a 50 Basis Point Fed Cut?

September 9, 2024 — Last week, the long-awaited labor data showed a weakening labor market, but didn’t give clear signals for the Fed to cut rates by 50 basis points at the FOMC meeting next week. Nonfarm payrolls for August increased by 142k, below average expectation of 165k. Job growth for the prior two months was also revised lower, with June and July’s figures adjusted to 89k and 118k, respectively.