On August 8, BCA Research analyst Dhaval Joshi pointed out that the current market pricing of U.S. interest rates is severely diverging from the Fed's stance, with potential mispricing brewing. Trump has called for a rate cut of 3% from the Fed, and given that the July employment report shows a significant slowdown in the U.S. job market, Trump seems to have the upper hand in this "struggle" with Powell, but one should follow the true reasons behind the slowdown in the job market. Joshi stated that weakness in the job market typically arises from weakened labor demand; however, that is not the case now. The reason is that new jobs are not driven by demand for workers, but rather by the number of workers available for hire (labor supply). Worse still, rate cuts will exacerbate the imbalance between labor demand and supply, potentially reigniting inflation without boosting job growth. Therefore, this would be a policy mistake.