Jobs Report — Biggest Job Loss in Years, Fed Forced to Cut Rates

"The official jobs report by the government was supposed to be released on Friday, October 3rd. However, because the politicians could not agree on a government funding bill on time, the federal government has shut down. And consequently, the Bureau of Labor Statistics did not release the reports. Therefore, people have been relying on the ADP jobs reports, which at least gives us insights into the labor market situation in the private sector. And for the month of September, the ADP report shows that the private sector lost 32,000 jobs. This was the biggest decline in 2 and 1/2 years."

"The official jobs report by the government was supposed to be released on Friday, October 3rd. However, because the politicians could not agree on a government funding bill on time, the federal government has shut down. And consequently, the Bureau of Labor Statistics did not release the reports. Therefore, people have been relying on the ADP jobs reports, which at least gives us insights into the labor market situation in the private sector. And for the month of September, the ADP report shows that the private sector lost 32,000 jobs. This was the biggest decline in 2 and 1/2 years."

"So, they cut interest rates in September and they're most likely going to cut interest rates this month as well. So, I want to show you the odds of that happening. Now, if you're if you're an investor in the stock markets or precious metals or crypto, then you're going to like these odds because rate cuts means that an easier monetary policy is coming and that's going to boost asset prices. So, take a look at this. This is according to the CM Fed watch tool. The next Federal Reserve meeting is going to be on October 29th. Right now, there's a 96.2% chance that the Federal Reserve will cut interest rates at this upcoming meeting, and there's a 3.8% chance that they're not going to cut rates. Okay. Right now, the Federal Funds interest rates at 4.25%. They're expected to cut the interest rates this month by 0.25%, which would bring the Fed funds rate down to 4.0%."

"Now, the meeting after October 29th, it's going to take place on December 10th, and there's an 86.3% chance that the Federal Reserve is going to cut interest rates at that December meeting as well. So, if the Federal Reserve cuts interest rates in October and in December, then the Fed funds interest rates going to fall from the current 4.25% to 3.75%."

"So honestly I if you compare the numbers AI has not been responsible for that many job cuts relatively speaking. However I'm going to say this again this is just my opinion. A lot of people are debating whether AI is going to eliminate a massive quantity of jobs in the future. Okay. So I'll tell you this. This number may seem low right now but I believe that yes AI is going to eliminate a large quantity of jobs in the years ahead."

"And this is why the Federal Reserve is cutting interest rates. They're looking at this and they're trying to revive the economy. They're trying to revive the labor market with an easier monetary policy."

"it is widely expected that the Federal Reserve is just going to continue to cut interest rates in 2026."

"it's very likely job cut plans are going to surpass a million for the first time since 2020."