Summary
[U.S. wage growth slows down, the Fed’s motivation to raise interest rates in June has been reduced by another point]Although the May non-farm payrolls report showed that hiring continued to increase, signs of a slowdown in wage growth may prompt the Fed to keep interest rates unchanged this month. Also considering raising interest rates later in the summer. “We are sticking to our baseline forecast that the Fed will keep monetary policy unchanged at its upcoming meeting,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, also said, “We still believe that the Fed will stay on hold in June. Whether to raise interest rates in July or September will mainly depend on inflation data. The continued strength of the labor market will definitely affect further income growth. The need for tight policies.” (Financial Associated Press)
Signs of a slowdown in wage growth could prompt the Fed to maintaininterest rateNo change, while considering a rate hike later in the summer.Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said, “We are sticking to our baseline forecast that the Fed will maintaincurrencyThe policy remains unchanged.” Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, also said, “We still believe that the Fed will remain on hold in June. As for whether to raise interest rates in July or September, it will mainly depend on inflation data. It will certainly affect the need for further tightening of policy. “
(Article source: Financial Associated Press)