Data released Friday showed a rise in nonfarm payrolls of 339,000 in May, beating expectations. Analysts at TD Securities say that strong payrolls are keeping the door open for another rate hike from the Federal Reserve.
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“The bi-monthly net revisions also added 93,000 jobs to the employment series, bringing the three-month moving average up significantly to 283,000 in May, up from 222,000 in April. Not really the direction the Fed is looking for. That said, the unemployment rate unexpectedly rose 0.3% to 3.7%, although the details of this rise were more nuanced.
“The May jobs report should leave the option of a hike fully on the table for the Fed. If Fed officials were looking for clear signs of a slowdown in the labor market, we don’t think this report clearly offers that prospect despite the EU rate hike. We continue to expect the Fed to raise rates in a final 25bp tranche to 5.25%-5.50% in June, but we also recognize that the FOMC decision will be very close.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
