U.S. job openings and hiring fell in June, suggesting that demand for labor was cooling in tandem with a slowing economy, which could provide another reason for the Federal Reserve to cut interest rates again next month.
The report from the Labor Department on Tuesday came against the backdrop of an escalation in the trade war between the United States and China, which caused a sharp sell-off on Wall Street on Monday and sent U.S. Treasury 10-year yields tumbling to the lowest since October 2016.
Concerns about the impact of the U.S.-China trade tensions on the 10-year economic expansion, the longest in U.S. history, prompted the Fed to cut rates last week for the first time since 2008. Financial markets have fully priced in further monetary policy easing at the U.S. central bank’s Sept. 17-18 meeting.
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