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THE JOBS REPORT JUST CLEARED THE PATH FOR RATE CUTS The economy lost 23,000 jobs in July against expectations of a 85,000 gain. - Nonfarm payrolls: -23K vs +85K expected - Private payrolls: +30K vs +78K expected - Average hourly earnings: +0.1% vs +0.3% expected - Unemployment rate: 4.1% vs 4.2% expected Markets had September rate hike odds above 57% going into today. Three Fed officials voted to raise rates this week. That case is now much harder to make. Nonfarm payrolls fell by 23,000 in July, a real loss, when Wall Street expected a gain of 85,000. Private nonfarm payrolls also missed badly, up just 30,000 against 78,000 expected. Unemployment rate actually dropped to 4.1% from 4.2%. Normally that reads as good news, but with actual job losses happening at the same time, it more likely means people left the labor force rather than found work. Wage growth stalled too. Average hourly earnings rose just 0.1%, a third of the 0.3% expected. That combination is what the Fed has been waiting for. Inflation pressure easing while the labour market stays intact. $FET