Will weak jobs report stall Fed rate hike?
Yellen's 'credibility' is at stake
Bankers (who mostly want higher interest rates) say today's Labor Department report that U.S. hiring rose by just 38,000 in May, less than a quarter of what economists expected, less than any month since Sept. 2010, less even than a weaker-than-expected April report, has likely scared the Federal Reserve off a summer interest-rate hike:
"Today's jobs report is very disappointing and came in well short of expectations. The Fed had been hinting at another rate hike this summer, but this report may call that into question." - Tony Bedikian, managing director of global markets, Citizens Bank
There's a big split in the job market: "The (hiring) numbers are disappointing... But wage growth has been decent - perhaps suggesting that the average employed worker is doing better while those still not working see weak prospects." -- Harry Holzer, former chief economist, U.S. Labor Department; author, Where Are All The Good Jobs Going?: