The sharp slowdown in U.S. employment supports the prospect of a Federal Reserve rate cut

On July 5th, < b > Today's latest data highlights the gradual cooling of the U.S. labor market, which should support expectations of a rate cut later this year. The data is in line with other jobs reports this week, showing a sharp decrease in job openings this year and a growing number of people filing for unemployment benefits. The continued slowdown in employment, coupled with a recent slowdown in inflation, has underpinned bets by Federal Reserve policymakers that interest rates will be cut as early as September. The jobs report is the last before Fed officials meet later this month. Markets currently expect the Fed to cut interest rates twice this year.