“Making matters worse, the Labor Department revised the jobs figures for June and July, saying the economy added fewer jobs than had been reported.”
The Market is pouting that the Fed isn’t lowering interest rates in the face of a number of troubling financial and economic indicators. Hang in there Ben. Don’t cave in to irrational pressure, until you have to….
The Dollar –
“The dollar fell sharply following the report, as the likelihood of an interest rate cut appeared to increase. Dollar-based assets would earn less interest if the Fed were to cut rates. In addition, gold prices rose sharply because some investors would be expected to abandon a weakening dollar and move into gold if the central bank lowers rates.
“This is just the expected response,” said Pandl, referring to Wall Street’s reaction to the jobs report. “The markets are repricing for lower growth and expectations of Fed cuts.”
