Fed Faces Pressure After Weak Payrolls; Bitcoin, Gold Rally
The latest U.S. labor market data adds urgency to the Federal Reserve’s policy path, with traders increasingly betting on a larger cut later this month.
August payrolls came in at just 22,000 versus expectations of 75,000. Downward revisions left June showing a rare monthly decline in jobs, while the unemployment rate ticked up to 4.3%. Wages grew at a steady pace, but the weak overall report underscored cooling momentum in the economy.
The reaction was swift across markets. Bitcoin spiked to $112,800, gold set a fresh record at $3,644, equities extended gains, the dollar slid, and Treasury yields fell.
With bitcoin struggling to regain momentum after dropping from its $124,000 high in August, a 50 basis point rate cut could become the catalyst bulls have been waiting for.
