Republican senators caution Trump against firing Fed chair Jerome Powell

Key Points

• July Jobs Report Expectations: Economists anticipate nonfarm payrolls to increase by 105,000 in July, a decrease from June's 147,000, with the unemployment rate expected to rise to 4.2% from 4.1%.**
• Labor Market Slowing: Recent data indicates a cooling labor market, with private payrolls growing by 104,000 in July per ADP, though overall hiring momentum has slowed.**
• Federal Reserve's Stance: The Fed held interest rates steady in July, with Chair Jerome Powell describing the labor market as "solid" despite signs of slowing job creation.**
• Consumer Spending as Key Indicator: ADP's chief economist suggests that consumer spending will be a critical measure of labor market health amidst recalibration to lower hiring levels.**
• Job Openings and Hiring Rates: June data from the Bureau of Labor Statistics showed a decline in job openings to 7.44 million and a hiring rate drop to 3.3%, the lowest since November 2024.**

Summary

The upcoming July jobs report, set for release on Friday at 8:30 a.m. ET, is expected to reflect a slowdown in hiring with nonfarm payrolls projected to rise by 105,000, down from June’s 147,000, and an unemployment rate increase to 4.2% from 4.1%. This data comes amid growing investor scrutiny of the US labor market for signs of cooling that might influence the Federal Reserve's interest rate decisions. Recent figures, including ADP’s report of 104,000 private payroll gains in July and a decline in job openings to 7.44 million in June, underscore a moderating labor market. Despite this, Fed Chair Jerome Powell described the market as "solid" after maintaining steady rates in July, noting a balance due to reduced labor supply from lower immigration. Analysts like BofA’s Shruti Mishra view the market as moderating rather than deteriorating, while ADP’s Nela Richardson highlights consumer spending as a key health indicator. Additional data shows hiring rates at their lowest since November 2024, yet layoffs remain low, allowing the Fed to adopt a wait-and-see approach on policy amidst inflation and tariff concerns.

Key Points

• DOGE experienced an 8% drop from $0.22 to $0.21 between July 31 and August 1, one of the steepest declines this month.
• Trading volume surged to 1.25 billion DOGE around midnight, far exceeding the 24-hour average of 365 million, indicating heavy liquidation activity.
• Resistance at $0.23 held strong, while $0.21 emerged as short-term support with signs of stabilization.
• Institutional wallets accumulated 310 million DOGE during the dip, and Bit Origin added 40 million DOGE to its treasury.
• Broader crypto market sentiment remains pressured by macroeconomic uncertainty, including inflation and interest rate ambiguity.

Summary

Dogecoin (DOGE) saw a significant 8% decline from $0.22 to $0.21 between July 31 and August 1, marking one of the steepest daily drops this month. The price fluctuated within a $0.03 range, peaking at $0.23 and bottoming at $0.20, with strong resistance at the upper limit and stabilization near $0.21. Trading volume spiked to 1.25 billion DOGE around midnight, nearly triple the daily average, suggesting intense liquidation and cascading sell orders. Despite the downturn, institutional wallets accumulated 310 million DOGE, and Bit Origin added 40 million to its treasury as part of a $500 million diversification strategy. The broader crypto market faces headwinds from macroeconomic uncertainty, with inflation and interest rate concerns dampening sentiment. Technically, repeated tests of $0.21 support and a narrowing price band hint at potential exhaustion of selling pressure. Traders are now monitoring whether DOGE can hold above the $0.20–$0.21 range, alongside macroeconomic signals and further institutional accumulation.

Key Points

• Y Combinator (YC) has opened applications for its fall cohort, focusing on six innovative startup themes, including cutting government waste through large language model (LLM)-powered software to replace traditional consulting giants like Deloitte and Accenture.
• YC is betting on the potential of small, high-agency teams to build massive companies, predicting the emergence of a 10-person, $100 billion company using AI tools for efficiency.
• Other themes include AI training for blue-collar workers, video generation as a core software technology, infrastructure for multi-agent AI systems, and AI-native enterprise software.
• The accelerator highlights political pressure to reduce government spending, noting the US government's $100 billion annual expenditure on consulting as a key area for innovation.
• Applications for YC’s Fall 2025 cohort close on Monday evening, Pacific time, signaling Silicon Valley’s direction for the next wave of breakout companies.

Summary

Y Combinator (YC) has launched applications for its Fall 2025 cohort, spotlighting six startup themes with a strong emphasis on innovation through AI and efficiency. A key focus is on reducing government waste by funding startups that develop large language model (LLM)-powered software to replace costly consulting services, addressing the US government’s $100 billion annual consulting expenditure amid political pressure for cuts. Other themes include creating AI training for blue-collar workers, leveraging video generation as a core software technology, building infrastructure for multi-agent AI systems, reinventing enterprise tools with AI at their core, and betting on the rise of a 10-person, $100 billion company enabled by AI efficiency. YC believes small, agile teams can scale rapidly without the bureaucratic drag of larger firms. The accelerator’s “Request for Startups” signals Silicon Valley’s future direction, with applications closing Monday evening, Pacific time. This initiative reflects broader trends of using technology to solve systemic inefficiencies and reshape industries, from government operations to media and enterprise solutions.