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Investing.com -- Federal Reserve Bank of Atlanta President Raphael Bostic said Friday’s employment numbers raise concerns about risks to the job market, suggesting the economy may be weakening more broadly.
Speaking on CNBC, Bostic called the latest jobs figures "significant" and noted that data revisions show a slowdown "in a significant way."
The Labor Department reported that nonfarm payrolls increased by just 73,000 jobs in July, well below economists’ expectations of 110,000. June’s figures were revised sharply lower to only 14,000 jobs added.
Despite these concerns, Bostic maintained that "in many regards, the labor market still looks good" and said he wouldn’t have changed this week’s Fed decision based on the new data.
Bostic indicated that the jobs data show risks "may be coming more into balance," but emphasized that inflation remains further from the Fed’s target than employment. He added that he’s not ready to increase his projection for interest rate cuts in 2025.
The Atlanta Fed president also noted it might take up to 12 months for businesses to adjust their pricing strategies, acknowledging, "I think we’re in a very difficult environment right now."
The weak employment report coincided with manufacturing data showing continued contraction. The Institute for Supply Management reported Friday that its manufacturing PMI fell to 48.0 in July from 49.0 in June, marking the fifth straight month of contraction.