US Jobs Report Supports Fed Holding Rates Steady for Longer, Says Oxford Economics' Houten
Macro
Nancy Vanden Houten, lead US economist at Oxford Economics, noted that while the July US jobs report significantly missed expectations, seasonal noise was partly to blame and it serves as evidence that the labor market is not overheating. Nonfarm payrolls fell by 23,000 from the previous month, dragged down by a sharp drop in state and local government hiring. With inflationary pressures from rising energy prices, tariffs, and AI-related investment easing, she said this outcome bolsters the case for the Federal Reserve to hold policy rates steady for an extended period.
