A sharply weaker U.S. employment report is intensifying pressure on the Federal Reserve to loosen monetary policy as soon as next month. The Bureau of Labor Statistics said the economy added just 73,000 jobs in July, well below economists’ forecasts, while previously reported gains for May and June were revised down by a combined 258,000. The unemployment rate rose to 4.248 percent, its highest level since October 2021, and several private surveys point to worsening hiring conditions across industries. The data landed only two days after the Federal Open Market Committee kept its benchmark rate unchanged at 4.25 percent to 4.50 percent. The decision drew rare dissents from Governors Michelle Bowman and Christopher Waller, who argued that mounting labour-market fragility warranted an immediate 25-basis-point cut. Chair Jerome Powell said policymakers would remain “data-dependent,” but offered no guidance on the timing of any move. Investors now see a steep drop in the barrier to easing. According to CME FedWatch, the probability of a quarter-point reduction at the Sept. 17 meeting leapt to 87 percent on 1 August from 38 percent the day before the jobs release. Treasury yields retreated and rate-sensitive equities regained ground as traders recalibrated expectations, underscoring how rapidly sentiment has turned on evidence that the post-pandemic labour boom is losing steam.