Weak Jobs Report Seals Fed Rate Cut as White House Criticizes Powell’s Timing

A disappointing August jobs report has all but guaranteed an interest rate cut at the Federal Reserve's upcoming September meeting. The economy added just 22,000 jobs last month—far below the 75,000 economists expected—while unemployment ticked up to 4.3%. June's figures were revised into negative territory, marking three consecutive months of deteriorating labor market data.

The TRUMP administration seized on the weak numbers to escalate its criticism of Fed Chair Jerome Powell. "Jerome Powell needs to do his job and cut those interest rates now," Labor Secretary Lori Chavez-DeRemer told Yahoo Finance. President Trump echoed the sentiment on Truth Social, dubbing the central bank chief "Jerome 'Too Late' Powell" for his delayed response to economic softening.

Powell had already telegraphed a potential policy shift during his Jackson Hole speech, noting that shifting risks "may warrant adjusting our policy stance." Market watchers now view a September rate cut as inevitable, with the jobs report serving as the final catalyst. The decision could inject liquidity into risk assets, including cryptocurrencies, as investors seek higher-yielding alternatives to traditional markets.