The job report came in strong for the last month, with non-farm payrolls increased by 372,000, topping the Dow Jones estimate of 250,000, while the unemployment rate stood at 3.6%. This underscores the strength of the U.S. economy, with the employment scenario remaining strong.
This is expected to stiffen the Federal Reserve’s resolve toward a three-quarter-point interest rate at its July meeting. Hence, while the job data is expected to lessen fears of an impending recession, it might further raise uncertainty regarding interest rates. Moreover, consumers cut spending adjusted for inflation for the first time this year in May, clouding the economic outlook.
