The U.S. economy is still adding jobs, but there's a slowdown.

For Marketplace, I'm Novasafo in for David Brancaccio.

We learned this morning that the economy added 114,000 jobs in July.

Analysts were expecting a slowdown, but not that much.

They were also expecting the unemployment rate to rise, but not as much as the Labor Department reported.

It went up to 4.3%.

Markets are tumbling on the news amid worries

that the Federal Reserve may have waited too long

to cut interest rates.

We'll have the numbers in a moment.

Joining us now is Chris Lowe,

chief economist at FHEN Financial in New York. Good morning, Chris.

Good morning.

Well, yesterday we learned initial jobless claims rose last week.

Now we have this jobs report. Has the labor market turned?

It certainly feels that way. So we're looking at a July job gain that's smaller than any of the increases in the second quarter.

And the second quarter in turn, every single month was weaker than any of the months in the first quarter. So it's not just a

week report, it's a continuation of a series of week reports. The bond market this morning is moving sharply after the jobs report.

What does that tell us? Well, it's a clear indication traders think the Fed made a

grave mistake, not cutting rates on Wednesday.

Jay Powell argued they have plenty of time, the job numbers aren't that week.

The Fed funds futures now shows a probability not of a quarter point cut in September,

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