Tentative Weakness in US Jobs Data Won’t Be Enough to Sway Fed

Tentative signs of weakness in the US labor market won’t be enough to sway the Federal Reserve from additional interest-rate increases, according to Bloomberg Economics.

“The trend pace of hiring is slowing, but remains too swift for the Fed’s comfort,” Stuart Paul, an economist at Bloomberg, wrote Thursday in a preview of Friday’s jobs report.

“Though cracks are emerging under the surface, Fed Chairman Jerome Powell’s recent comments indicate he believes the labor market is still too tight,” Paul said.

Here’s what Bloomberg Economics is expecting:

• US employers added 225,000 jobs on net in June, which would be the second-smallest monthly increase this year
• The unemployment rate remained unchanged at 3.7%
• Average hourly earnings rose 0.3%

The Bloomberg Economics estimates for Friday’s report are largely in line with median projections in a Bloomberg survey of outside forecasters.

Information extracted from: https://www.bloomberg.com/news/articles/2023-07-07/tentative-weakness-in-us-jobs-data-won-t-be-enough-to-sway-fed?cmpid=BBD070723_MKT&utm_medium=email&utm_source=newsletter&utm_term=230707&utm_campaign=markets