Democrats in Panic Call for Immediate Rate Cuts

(LibertySociety.com) – The global stock market took a beating on Monday following the release of the US jobs report for July and a weakening in consumer spending, with the Dow dropping over 1,000 points amid fears of an economic slowdown.

The US gained only 114,000 jobs last month, far below what was expected, as unemployment increased to 4.3 percent, hitting its highest level since October 2021.

The downturn led some leading economists to urge the Federal Reserve to cut its benchmark interest rate.

With the stock market losing ground and consumer spending weakening, some investors fear that the Fed may have waited too long to cut interest rates.

Amanda Agati of PNC’s asset management group told CBS News that investors are concerned that the central bank is “behind the curve” when it comes to cutting interest rates.

Fear of an impending recession following the lackluster jobs report caused stocks to tumble worldwide on Monday. The S&P 500 index lost 3 percent, the largest single-day drop in nearly two years.

The Nasdaq composite fell 3.4 percent, fueled by significant drops in tech giants Apple, Meta, and Nvidia.

The US stock market began to lose ground even before the July jobs report was released due to lackluster manufacturing and construction reports that suggested that the US economy may be crumbling under the weight of high interest rates.

The drop on Wall Street was just the latest in a series of sell-offs that hit markets worldwide on Monday.

Japan’s Nikkei 225 kicked off the disastrous trading day, falling over 12 percent on Monday in its worst loss since the Black Monday crash of 1987. South Korea’s Kospi index also fell by 8.8 percent. Meanwhile, in Europe, stock markets dropped by over 2 percent.

In its meeting on July 31, the Federal Reserve decided to leave the federal funds rate unchanged.

DeVere Group CEO Nigel Green told CBS News that the Fed had to more aggressively ease monetary policy if it hoped to avoid a recession. Green said the Fed could not afford to be behind the curve this time around.