The delay in hiring last month further confirmed that economic conditions in the US were weakening, returning the spotlights back to the Federal Reserve, says Darl Cronk, president of Wells Fargo Investment Institute.
U.S. According to the Labor Ministry, employers added fewer jobs than expected last month, which also revised the number for June and July. That, along with clear signs of slowing production, is probably enough to push the Federal Reserve to cut its interest rate by 0.25%, Cronk said.
The data is not bad enough to support the 0.5% decline this month, which most investors are pushing for, he added. But that would be a mistake if the central bank did not follow another cut later this year.
"The Fed just has to work faster to stay stationary with central banks around the world, easing and reducing interest rates," Kronk said.