May Payrolls Drop To 13 Month Low But Come In Hotter Than Expected; Wage Growth Eases
The bottom line is simple: this wasn't the collapse that so many were quietly expecting (certainly Elon Musk), and the lack of a negative shock, means that the Fed remains on a rate hiking autopilot. As Bloomberg writes, “for the Fed, this is stay-the-course data, in our view. The 50-bp hikes in June and July remain likely, while September will remain a close call for 25 bps or 50 bps. Data over the next three months will determine if the Fed decides to adjust the pace of hikes.”
