The BLS’s benchmark revision significantly reshapes the narrative of the U.S. labor market’s health over the last year. The August jobs report, released last week, showed just 22,000 new positions, nearly all in healthcare and support services; other sectors have stagnated, amplifying concerns that job growth outside healthcare may soon vanish altogether as Medicaid cuts take effect in October.
Wall Street is fixated on the BLS revision and its implications for Fed policy. Investors hope the sharp downward correction will prompt a substantial rate cut at the upcoming meeting, with some betting on a half-point “jumbo” cut—though consensus forecasts a milder 25 basis-point reduction.
This places Powell in a pickle: Maintain credibility by sticking to the central bank’s process, or bow to growing political and economic stress. In either scenario, Trump’s vocal opposition and another shocking jobs revision raise the stakes for a Fed decision with implications across politics, markets, and Main Street alike.
As Trump weaponizes the labor data to escalate attacks on Powell, attention shifts to the Fed’s imminent rate decision and the White House’s response to growing anxiety among workers and investors. With economic uncertainty mounting, the revised jobs figures add crucial “juice” to a controversy at the intersection of policy, politics, and public confidence.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
