Today, the June jobs data was released. It showed that the US economy added 209,000 jobs, less than May's 360,000, and the consensus of 240,000. Even though hiring cooled down, payrolls increased and unemployment fell to 3.6% from 3.7% last month.
The markets rose after the data as this implies that rate hikes might be coming to an end. The markets had responded adversely to Thursday's economic data which showed that the US Economy grew by 2% in the first quarter.
All of this data puts the Fed well on track to raise the interest rate to a 22-year high at the June 25-26 meeting. The economy is more resilient than expected in the face of rate hikes, even though inflation fell. It is thought to be unlikely that inflation will cool down to 2% until the job market cools down and the unemployment rate rises from historic lows, even though this seems negative for the economy in the short term, most policymakers think inflation will cause a larger loss in the long term. So, the July rate hike might not be the last one this year.
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