Strong US Labor Market Foundation Bolsters First Quarter Economy
In May, US job growth topped estimates at 272,000, although the unemployment rate rose slightly, snapping a 27-month streak below 4%.
In a time when Americans and the Federal Reserve want clear economic data, Friday’s jobs report was more equivocal than expected.
“But the Fed is asking, ‘Can we lower interest rates?'” Can we cut?’ Looking at this report makes reductions hard to justify.”
Bureau of Labor numbers numbers issued Friday show that May employment increases are far higher than April’s 165,000, which was revised down. The May statistics exceeded FactSet average predictions of 180,000.
Salary increases exceeded expectations for the month, raising average hourly wages to 4.1% over the previous year, reversing a months-long drop.
She added that the service industry covers personal care, dry cleaning, cleaning, house maintenance, and vehicle repair.
Wednesday brings important inflation figures. On the same day as the May Consumer Price Index, the Federal Reserve announces its next policy statement, which is likely to keep interest rates unchanged.
In terms of rate reduction, Friday’s jobs news didn’t inspire traders. December is the first rate cut prediction from the CME FedWatch Tool.
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