Unemployment rises

The U.S. unemployment rate rose to 4.3% in July, a 0.2% increase from June, according to the Bureau of Labor Statistics. The economy added 114,000 jobs, but temporary layoffs increased by 249,000, raising concerns among economists regarding the Federal Reserve's delay in cutting interest rates. Elise Gould from the Economic Policy Institute highlighted the softening labor market, suggesting that inflation pressures are easing and that the Fed may need to act more swiftly. Fed Chair Jerome Powell noted that although the labor market is normalizing, further data is required to justify rate cuts, which could come by September if conditions allow. Critics, including Senator Elizabeth Warren, are urging immediate action from the Fed, warning that inaction could push the economy into a recession. Meanwhile, some analysts caution that rushing to cut rates may signal panic and exacerbate market concerns.