US Job Growth Revised Down, Prompting Speculation of Fed Rate Cuts

The US economy added 818,000 fewer jobs than initially reported in the year ending in March, signaling a slowdown and prompting speculation of Federal Reserve rate cuts. Monthly job growth is expected to be more muted, while inflation has plummeted.

Revisions show declines in professional/business services and leisure/hospitality jobs. The Labor Department's downward revision suggests a steadily slowing job market, reinforcing the Fed's plan to cut interest rates.

The revision is the largest since 2009 and may be subject to data volatility and noise from immigrant hiring. While the revisions have sparked concerns, some experts argue that the methodology used by the government likely underestimates the contribution of unauthorized immigrants to job growth.

The market's response has been relatively muted, with investors awaiting further guidance from the Fed's minutes and Chair Jerome Powell's speech at the Jackson Hole symposium.