FT reported a sharp slowdown in the US labor market

The US labor market has slowed sharply in the last three months, which has increased pressure on the Federal Reserve to lower interest rates. This was reported on August 1 by the Financial Times (FT) newspaper.

"In the world's largest economy, only 73,000 jobs were created in July, while hiring data for May and June were reduced by a total of 258,000 as a result of an unusually large—scale revision of the data," the material says.

The article clarifies that the revision of the data for several months was caused by a reduction in government spending on personnel. The statistics bureau's figures also show a decrease in the number of migrant workers, which has decreased by 1.2 million over the past six months amid a tightening campaign of mass deportation.

"The short-term U.S. government debt rose sharply as traders bet that the Fed would now take more aggressive measures to support the economy. This led to a decrease in the yield on two—year treasury bonds by 0.19% to 3.76%, which was the most significant drop in almost a year," the article says.

Against this background, traders in the futures markets began to consider the possibility that the Fed rate would decrease by a quarter of a percentage point.

Federal Reserve personnel: conflict between Trump and the head of the Fed may undermine the role of the dollar

Is the regulator in the United States really at risk of losing its independence and why is the role of central banks now being debated in all parts of the world?

On July 25, it was reported that any attempt by the United States to limit the Fed's independence "would have a very bad effect on the markets." It is noted that markets value the independence of central banks, especially in setting interest rates.

On July 2, US President Donald Trump called on Fed Chairman Jerome Powell to resign immediately. At the same time, on July 16, CBS News reported that the American leader had consulted with Republicans in Congress on the dismissal of the head of the department. According to the channel, Trump has repeatedly raised the issue of Powell's replacement, as he kept interest rates at the same level instead of lowering them. On July 18, the American leader said that Powell's appointment was one of his worst mistakes.

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