CNBC’s Jim Cramer is urging Federal Reserve Chief Jerome Powell to cut interest rates amid a disappointing jobs report. The July nonfarm payroll growth of 73,000 fell short of economists’ expectations, while the unemployment rate ticked up to 4.2%. Average hourly earnings rose only 3.9% year over year, less than estimates. Cramer believes this data suggests the Fed didn’t need to wait to cut rates.
The weak jobs number follows the Fed’s decision last week to hold short-term rates unchanged despite demands from President Donald Trump and dissents from two top central bankers. The Fed had cut rates three times in 2022, but Powell emphasized that “modestly restrictive policy” is still appropriate due to the economy’s strength.
However, Friday’s jobs report has sparked concerns about a potential rate reduction sooner rather than later. Market analysts now see higher odds of a September rate cut, with the market pricing in a 79% chance of change. The market sell-off continues, driven by updated tariff plans from Trump and a big drop in bond yields.
“We have very little job growth, and we have wages that are not going up,” Cramer said. “That is when you cut.” He also noted that the plummeting bond yields seem to be following President Trump’s lead.
Source: https://www.cnbc.com/2025/08/01/cramer-has-an-urgent-message-for-powell-after-julys-terrible-jobs-growth.html