Fed Rate Cuts Loom Large As Job Market Slows Sharply

MACROECONOMICS - NEW YORK. U.S. central bankers may be having second thoughts about their decision earlier this week to hold borrowing costs steady, after a government report on Friday showed the job market slowed sharply last month.

Employers added just 114,000 jobs in July, the U.S. Labor Department reported, and the unemployment rate rose to 4.3%, marking an unexpected deterioration in the labor market that had held up surprisingly well during the Fed's aggressive rate-hike campaign.