"In episodes when labor demand slides with a growth downshift, it is often a precursor to retrenchment."

Stocks fell sharply as investors digested weak employment numbers alongside the turmoil within the government’s statistical agencies.

"In episodes when labor demand slides with a growth downshift, it is often a precursor to retrenchment."

The resignation of FOMC member Adriana Kugler also opens the door for a more dovish Fed shift.

"This implies that the weak gains in payrolls in recent months might have something to do with the supply of labor."