itional evidence that the labor market is slowly coming into better balance as job growth slows and labor supply steadily expands. They expect the Federal Reserve to raise interest“Nonfarm payrolls have seemed to defy the gravity weighing down other gauges of the labor market over the past year. However, the June employment report suggests this dynamic has run its course.
“The surprisingly resilient labor market has helped to keep the U.S. economy expanding at a moderate pace despite continued fears about a recession. However, even amid more forthcoming labor supply and gradually cooling labor demand, the weight of the evidence still suggests that the labor market remains too tight to be consistent with 2% inflation.
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