The U.S. lost 23,000 jobs in July, surprising analysts who expected job gains, according to government data. This marks a downturn from June, when 57,000 jobs were added. Over the first half of 2026, the U.S. added an average of 92,000 jobs per month, a rebound from an average monthly loss of 7,000 jobs in late 2025. At last week’s Fed meeting, the benchmark interest rate was held steady at 3.5%-3.75%, but three out of twelve board members dissented, favoring a rate hike – the largest dissent since 2016. What we’re watching: Higher interest rates could further dampen hiring and growth in upcoming months as businesses face increased borrowing costs.