U.S. Outlook: Job growth back on track in June
Chief Economist
June nonfarm growth easily surpassed analysts’ expectations, increasing by 222K jobs on the month.
Overall this was a solid payroll report that reinforces the notion that the U.S. labor market remains a bright spot for the U.S. economic expansion.
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on July 7.
Key observations:- As long as the U.S. economy can continue to put up job numbers like this, the FOMC will remain on its rate-hike and balance-sheet-reduction schedules this year.
- Our forecast on Fed monetary policy going forward is unchanged, given this new labor market information.
- If there was any disappointment, it was in average hourly earnings.
- Without stronger wage growth, it is unlikely we will see sustained acceleration in consumer price inflation anytime soon.
