Recent economic data shows signs of weakness in the U.S. job market. The latest non-farm payroll data for July was far below market expectations, with only 73,000 new jobs added, significantly lower than previous forecasts. Even more concerning is that the employment data for May and June has also been significantly revised downward.

This weak employment data has raised concerns in the market about the outlook for the U.S. economy, while also increasing expectations that the Federal Reserve may adopt a loose monetary policy. According to the Chicago Mercantile Exchange's (CME) 'FedWatch' tool, market expectations for a 25 basis point rate cut by the Fed in September have skyrocketed to 80.3%, compared to just 41.3% before the non-farm payroll data was released.

In addition to the impact of employment data, personnel changes within the Federal Reserve have also attracted market attention. It is reported that Federal Reserve Governor Waller will resign next week. This change may provide the current administration with an opportunity to appoint a new governor in advance, which could influence the direction of the Federal Reserve's policies.

These factors combined not only reflect the challenges currently facing the U.S. economy but also highlight the market's sensitivity to the future direction of the Federal Reserve's monetary policy. Analysts believe that if future economic data continues to weaken, the Federal Reserve may be more inclined to adopt a loose monetary policy to support economic growth. However, specific policy decisions still need to weigh various factors such as inflation pressures, employment market performance, and overall economic growth.