FT: U.S. Job Growth Expected to Slow in June, But Won’t Stop FED from Raising Rates

The Financial Times reported that U.S. job growth is expected to slow in June, but not fast enough to prevent the Federal Reserve from resuming raising interest rates later this month.
The median Reuters forecast shows the U.S. added 225,000 non-farm payrolls in June and that the unemployment rate will remain near multi-decade lows and ease back to 3.6 percent after a modest rise in May.
The labor market has proven resilient, with economists underestimating the strength of job growth for 14 straight months.
Annual growth in hourly earnings is expected to slow to 4.2%. That would be the lowest level in two years, but still well above the inflation rate of around 3.5 percent that most economists consider consistent with the Fed‘s 2 percent inflation target.
Drew Matus, chief market strategist at Metropolitan Investment Management, said: “After the unemployment rate rose in May, if the unemployment rate rises again after that, it may cause some officials to reconsider their actions when they have just seen the impact of the increase in the unemployment rate. What a radical measure.”