Federal Reserve Governor Lisa Cook described the July employment report as "concerning" and suggested it could indicate a pivotal moment for the US economy.

Speaking at a discussion organized by the Boston Fed on Wednesday, Cook noted that "these revisions are somewhat characteristic of turning points."

Data released last week revealed a sharp cooling in the labor market over recent months. According to the Bureau of Labor Statistics report, non-farm payrolls increased by just 73,000 jobs in July, while the previous two months' figures were significantly revised downward by nearly 260,000 jobs. The unemployment rate edged up to 4.2% from 4.1% in June.

This data emerged just two days after Fed policymakers decided to keep interest rates unchanged due to concerns about tariffs' impact on inflation. Fed Chair Jerome Powell had previously indicated that labor market stability provided the central bank with time to gather more information before adjusting rates.