economy
The Fed was expected to hike interest rates in September. Don't bet on that now, economists say.
Updated on: August 7, 2026 / 4:58 PM EDT / CBS News
TL;DR
- Employers shed 23,000 jobs in July, contrary to expectations.
- Hiring data for May and June was revised downwards by a combined 103,000.
- The probability of the Fed holding interest rates steady in September rose to 56% after the jobs report.
- High inflation remains a concern, with the annual rate at 3.5% in June.
- Economic uncertainty, policy issues, and geopolitical factors are contributing to employers' hesitancy in hiring.
- Some economists still predict rate hikes later in the year to address inflation.