The US economy added 162,000 new jobs in August, according to the latest nonfarm payrolls report. The figure surged past Reuters economists’ expectations of 56,000 and far exceeded the average monthly gain of 31,000 over the past twelve months.
June payroll figures were also revised upward from 20,000 to 31,000, while July figures, initially reported at minus 23,000, flipped to plus 21,000. The two consecutive revisions added 55,000 new jobs beyond initial market estimates. By sector, food services led gains with 59,000 new positions, followed by manufacturing adding 16,000 jobs, offsetting the loss of 23,000 positions in the information sector.
The unemployment rate held steady at 4.1%, alongside labor force participation climbing to 61.6%. Average hourly earnings ticked up 0.3% from July, bringing annual wage growth to 3.1%.
Trump Demands Rate Cuts
Donald Trump immediately pressured the central bank to cut interest rates via a threat on Truth Social: “LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.” The former president argued that America now holds a much stronger credit position and demanded Fed officials act like patriots.
According to the CME FedWatch tool following the data release, the probability of a 25-basis-point rate hike at the September 15-16 meeting jumped to 61%, up from 52% prior to the release. The shift in bets came a day after Fed Governor Christopher Waller stated that inflation was cooling and voiced support for holding interest rates steady.
The two-year US Treasury yield surged 5 basis points to 4.38%, while the 10-year yield rose 1 basis point to 4.776%. The US dollar gained 0.2%, whereas gold prices slipped 1.2%. Citigroup pushed back its rate cut forecast from late 2026 to June 2027, projecting only three rate cuts in 2027 under its revised outlook.
Why Is Bitcoin Getting Dragged Down?
The combination of employment and wage data backed analysis by eToro’s Bret Kenwell, who noted that investors view this as a ‘good news is bad news’ scenario weighing on both equity and crypto markets. Robust job gains give the central bank justification to keep interest rates elevated.
Bitcoin reacted to the nonfarm payrolls report by sliding below the $80,000 level, extending downward price pressure seen in preceding days. Higher-for-longer interest rates mean investors continue seeking yields in traditional financial assets while shying away from risk-on markets. Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
