Firm US jobs numbers boost rate hike chances, but lack of breadth remains a concern
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NORTH AMERICA: Yet another stronger-than-expected US jobs number in an environment of rising inflation is fuelling expectations of a Fed rate hike before the end of the year. Nonetheless, there is a lack of breadth in job creation and wage growth is slowing, meaning household fin
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4 itemsFirm US jobs numbers boost rate hike chances, but lack of breadth remains a concern
Firm US jobs numbers boost rate hike chances, but lack of breadth remains a concern
US rate hike talk cools on softer jobs data
The recent weaker-than-expected US jobs data has diminished the likelihood of immediate rate hikes by the Federal Reserve, as highlighted in the latest commentary. Per the full note from ing-think, the economy added only 57,000 jobs in June, significantly below the expected 113,000, with a notable decline in the labor force participation rate revealing deeper worker disengagement. This data points to a potential pause in monetary tightening as the Fed weighs sluggish job growth against inflation indicators. The absence of immediate catalysts on the calendar allows the market to digest this data without the pressure of upcoming economic releases.