Stagflation Fears Intensify as US Jobs Data Reveals Steepest Downgrade in Decades

The US labor market's fragility came into sharp focus with a government revision showing 911,000 fewer jobs created through March 2025 than initially reported—the largest downward adjustment in 20 years. August payrolls grew a meager 22,000, cementing a three-month average of just 29,000. Oxford Economics noted the "stag in stagflation became more pronounced," referencing December 2022's first monthly decline.

JPMorgan's Jamie Dimon echoed concerns, stating the economy is clearly weakening though recession remains uncertain. The data amplifies pressure on the Federal Reserve to navigate rate cuts amid persistent inflation, potentially disrupting the bull market's trajectory. Cryptocurrencies may face volatility as traditional markets reassess risk appetite under stagflationary conditions.