Markets are likely to move on the back of the last jobs report before the Fed decision on September ... [ ] 18. Photo by Michael M. Santiago/Getty Images.
The August U.S. jobs report showed improvements from July, with a modest decline in the unemployment rate and an improvement in net payroll gains. With an upcoming Federal Reserve meeting on September 18, this jobs report supports the potential for a 0.25% interest rate cut, even if it dampens hopes of a 0.5% rate cut.
The August jobs report was modestly positive, with a payroll gain of 142,000 net new positions, which was better than the job gains in July. Meanwhile, the unemployment rate fell to 4.2% from 4.3% in July. Unfortunately, there were also significant downward revisions of 86,000 jobs to the previous two payroll reports.
Despite the downward revisions, this jobs report is not bad news. Fed rate cuts are coming, and the U.S. labor market looks less at risk than it did just a month ago. However, the modestly positive nature of this report is........