By Lucia Mutikani

WASHINGTON (Reuters) -U.S. job growth likely slowed in July, with the unemployment rate forecast rising back to 4.2%, but that probably would be insufficient to spur the Federal Reserve to resume cutting interest rates soon as tariffs are starting to fan inflation.

The anticipated slowdown in nonfarm payrolls in the Labor Department’s closely watched employment report on Friday would mostly be payback after a surprise surge in state and local government education boosted employment gains in June.

The U.S. central bank on Wednesday left its benchmark interest rate in the 4.25%-4.50% range. Fed Chair Jerome Powell’s comments after the decision undercut confidence the central bank would resume policy easing in September as had been widely anticipated by financial markets

See Full Page