- Analytics
- News and Tools
- Market News
- US: Labor market continues to cool, but only at a gradual pace – Wells Fargo
US: Labor market continues to cool, but only at a gradual pace – Wells Fargo
The June US employment report showed the economy added 209,000 jobs, below expectations. Analysts at Wells Fargo point out that the report offered additional evidence that the labor market is slowly coming into better balance as job growth slows and labor supply steadily expands. They expect the Federal Reserve to raise interest rates at the July meeting.
Key quotes:
“Nonfarm payrolls have seemed to defy the gravity weighing down other gauges of the labor market over the past year. However, the June employment report suggests this dynamic has run its course. Nonfarm payrolls increased by 209K in June—a respectable gain in its own right—but below the Bloomberg consensus for the first time in 15 months. Revisions also pointed to recent job growth flying a little closer to Earth.”
“The surprisingly resilient labor market has helped to keep the U.S. economy expanding at a moderate pace despite continued fears about a recession. However, even amid more forthcoming labor supply and gradually cooling labor demand, the weight of the evidence still suggests that the labor market remains too tight to be consistent with 2% inflation. The directional progress towards a more balanced labor market is encouraging and helps explain why the FOMC has slowed the pace of its rate hikes, but today's data point to another 25 bps rate hike at the upcoming FOMC meeting on July 25-26th.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
