Since unemployment was higher than expected and is potentially nearing a cycle high, the CME FedWatch tool reported that bets for a Fed interest rate cut in September improved to 87% on August 1 from 38% on July 31. The Fed held interest rates unchanged at a range of 4.25% to 4.50% on July 30, but not every voting member agreed.

New York Fed’s John Williams says labor market remains solid, even after unusually large downward revisions to job gains for May and June.

The Federal Reserve won’t cut interest rates until it sees how inflation and job creation respond to higher tariffs. The next big bite of the apple arrives on Friday with the July employment report. Here’s what to expect.