US job growth slowed dramatically in August, pushing the unemployment rate to a near four-year high of 4.3 percent. This clear evidence of a softening labor market has solidified expectations for a Federal Reserve interest rate cut this month.

In a further alarming sign, the Labor Department's Friday report revised June's figures to a net job loss, the first in over four years. This has intensified concerns over economic stagnation. Economists largely attribute the slowdown that began in April to Trump administration policies, including import tariffs, restrictive immigration measures, and large-scale public sector layoffs.

Key data from the Labor Department report:

- Nonfarm payrolls: +22,000 in August, massively missing the Reuters forecast of +75,000.

- Unemployment rate: Rose to 4.3 percent, up from 4.2 percent in July and the highest since 2020.

- Revision: June payrolls were revised down to show a loss of 13,000 jobs, starkly contrasting with previous report of gains of 14,000.

"The economy is skating as close to the edge of recession as you can get," said Christopher Rupkey, chief economist at FWDBONDS. "Companies are clearly hunkering down and refusing to hire and the blame can be traced back to Washington's economic agenda. The only medicine to help is a rate cut from the Fed."

"The Fed is in a very difficult situation," said Yin Xiaopeng, the dean of the Research Institute for Global Value Chains at the University of International Business and Economics in an interview with CGTN. "They have to reduce the interest rate to save the economy even if inflation is still high."

"Tariffs still in place make lowering inflation impossible in one year or longer. The US economy faces a risk of stagflation unless it changes its global tariffs plan," Yin added.

Fears of stagflation, a dreaded 1970s-style scenario of stagnant growth coupled with high inflation, are mounting. This high-risk environment has led investors to heavily bet on a significant Fed rate cut at the September 17-18 meeting.

(With input from Reuters)