Analysis: Nonfarm Payrolls Weakened Yet Still Growing; Fed’s Patience Gains a Fresh Appraisal

Analyst Eric Merlis said, "June nonfarm payrolls clearly missed expectations, a stark contrast to the upside surprises seen earlier this year. However, the labor market continues to create jobs, and wage growth shows little sign of accelerating." "With labor force participation weakening and hiring cooling, the Fed's decision to hold steady last month no longer looks like a policy mistake, but more like a cautious and patient approach. Meanwhile, the market is repricing: as inflation discussions persist, the likelihood of future rate hikes is declining." (Jin Shi)