US Labor Market Revisions Signal Economic Struggles: Dollar Under Pressure, Rates Plummet

Recent revisions to U.S. labor market data have unveiled a much grimmer economic scenario than initially reported, putting significant pressure on the dollar and leading to a dramatic drop in yields. The Federal Reserve now faces a critical challenge: while pressure mounts to significantly cut interest rates in September, there are fears that this move may be too late (for those who think the central banks are running the economy: they follow the bond market, the rest is gaslighting and accelerating boom bust cycles to grow the bags of their cronies).

By then, the U.S. could already be sliding into a recession that even President Biden's hefty government spending may not be able to avoid any longer.

Initially, the economy appeared to have added 2.9 million jobs between April 2023 and March 2024, averaging about 242,000 new jobs per month. However, the revised figures paint a bleaker picture, reducing the average monthly job gain to just 173,500. This correction translates to a total downward adjustment of 818,000 jobs, reflecting a 0.5% reduction in total employment during the period—a far larger revision than the typical annual adjustments of around 0.1%.

The fiat pump will be epic as soon as recession hits.

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