The U.S. labor market has experienced its slowest growth in months, prompting discussions for a potential interest rate cut in September. Federal Reserve Governor Michelle Bowman is urging the Federal Open Market Committee (FOMC) to take action during their September 16–17 meeting to bolster employment and prevent more drastic measures later. The July nonfarm payroll report revealed a mere 73,000 job increase, significantly below expectations, with revisions to previous months confirming a trend of weaker hiring. The CME FedWatch Tool indicates an 88.9% chance of a rate cut this month. Historically, such cuts have enhanced liquidity and supported risk assets like stocks and cryptocurrencies. Bowman, along with Governor Chris Waller, previously advocated for a 25-basis-point cut in July, and more policymakers are now supporting this view. Minneapolis Fed President Neel Kashkari and San Francisco Fed President Mary Daly have also suggested the need for rate reductions. Bowman believes a gradual approach will help meet the Fed's dual mandate while addressing job creation concerns. Read more AI-generated news on: https://app.chaingpt.org/news