Strong August Jobs Report Removes Fed Hiking Obstacle

The upward revision to July's payrolls and the two-year high in the six-month average effectively neutralize the labor-market argument that had been a primary counterweight to tightening. This shifts the policy debate squarely back to inflation dynamics and the Fed's own guidance, making the September meeting a more straightforward call. The key question now is whether the Fed's communication signals a single hike or opens the door to a more sustained tightening cycle, which would carry broader implications for risk asset valuations and funding costs across crypto and RWA markets.