Analysis: Nonfarm payrolls weakened but still growing; the Fed’s decision to hold steady is being reevaluated

Odaily reported that analyst Eric Merlis said: “The June nonfarm payrolls significantly missed expectations, a sharp 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 rather a cautious and patient approach. Meanwhile, the market is repricing: as inflation discussions persist, the likelihood of future rate hikes is declining.” (Jin Shi)