The U.S. added 142,000 jobs in August, slightly less than the 160,000 expected by economists. The unemployment rate edged down to 4.2%, in line with expectations. While the headline numbers don't appear to make a strong case for a 50 basis point rate cut, the downward revisions to the prior two months' job gains are "somewhat troublesome." The three-month average job growth of just 116,000 is sure to come up in the Federal Reserve's discussions as it prepares to begin its rate-cutting cycle later this month.

The bitcoin price rose about 1% to $56,500 in the minutes following the report, but remains lower by 5% from week-ago levels. Traditional markets also reacted, with U.S. stock index futures trimming early large losses and the 10-year Treasury yield falling 5 basis points to 3.68%.

While the headline August jobs numbers don't appear strong enough to prompt a 50 basis point rate cut, the downward revisions to prior months' data could sway the Fed to opt for a more aggressive 50 basis point move when it meets in mid-September. The Fed will be weighing a range of economic data as it makes its decision.

Source: https://www.coindesk.com/markets/2024/09/06/us-added-142k-jobs-in-august-likely-setting-stage-for-25-basis-point-rate-cut/

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