US nonfarm payrolls unexpectedly declined in July, down 23,000, with June’s gain revised down to a 20,000 increase, raising questions about a September Fed rate hike. The unemployment rate eased to 4.1% from 4.2% as labor force participation fell; economists describe the market as “slow hiring, slow firing.” Despite six months of Middle East tensions, Q2 domestic demand grew at the fastest pace in three years. Markets had priced a September hike before the report; next week’s inflation data may

US nonfarm payrolls unexpectedly declined in July, down 23,000, with June’s gain revised down to a 20,000 increase, raising questions about a September Fed rate hike. The unemployment rate eased to 4.1% from 4.2% as labor force participation fell; economists describe the market as “slow hiring, slow firing.” Despite six months of Middle East tensions, Q2 domestic demand grew at the fastest pace in three years. Markets had priced a September hike before the report; next week’s inflation data may intensify debate over near-term monetary policy.