U.S. job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a sharp moderation in the labor market. Nonfarm payrolls increased by 73,000 jobs last month after rising by a downwardly revised 14,

Federal Reserve Chair Jerome Powell repeatedly described the labor market as solid and balanced at his press conference on Wednesday after the Fed held rates at 4.25%-4.50%. Still, he acknowledged there are downside risks.

The Federal Reserve won’t cut interest rates until it sees how inflation and job creation respond to higher tariffs. The next big bite of the apple arrives on Friday with the July employment report. Here’s what to expect.