The #US June #employment report shows that the drop seen in May (72 000) was temporary. The June figure was 224 000 and 191 000 for the private sector. The average for both measure is close to figures observed in 2016 and 2017. No necessity for the Fed to act rapidly. In 2017, the Fed was tightening smoothly.

On the wage side, the deceleration is rapid at 3.14% on a year (3.4% in Feb.). Graph shows that the Fed rate can manage a plateau as long as wages do not drop rapidly. This would be caused by a strong growth slowdown. It’s not the case yet. Therefore, nothing is expected on the Fed’s side in July.