RiskReversal Pod Markets & The Fed Entering Uncharted Territories
Sep 8, 2025
Liz Young Thomas, an investment strategist at SoFi, shares her expertise on market trends and economic indicators. They discuss the fallout from a disappointing jobs report and its implications for the Federal Reserve's rate cuts. The conversation touches on the delicate balance between unemployment rates, inflation, and market sentiment. They explore the role of small-cap stocks and the evolving significance of gold in today's economy. Additionally, Liz shares humorous anecdotes about kombucha and reflects on community spirit during a recent fundraising event.
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Weak Jobs Boost Fed Cut Odds
- The market treated the weak August jobs print as positive because it increased the odds of Fed rate cuts later this year.
- Markets priced roughly 75 bps of cuts across upcoming meetings after the 22k print.
Revisions Turn June Negative
- August payrolls missed badly at 22,000 versus 75,000 expected and revisions pushed June into negative territory.
- That produced the first negative June print since 2020 and revived talk of more aggressive Fed easing.
Monitor Real Negative Prints And Unemployment
- Watch for consecutive live negative payroll prints and a sustained rise in unemployment above ~4.5% as a real warning sign.
- If those appear, treat weak jobs as bad news rather than a catalyst for rate cuts.