The employment situation report for June did nothing to deter the market from thinking that the Fed is going to remain on an aggressive rate-hike path. That is the key takeaway from the report, which was solid in terms of nonfarm payrolls growth (372,000) and still solid in terms of average hourly earnings growth (+5.1% year-over-year). It is likely being thought, too, that wage-based inflation pressures are apt to be sticky considering the labor force participation rate slipped in June to 62.2% from 62.3%.
US Adds Jobs in June with Government Only Major Category Shedding Jobs.