Analysis: Weakening Nonfarm Data Still Shows Growth, Fed’s Hold Policy Reassessed

According to Odaily, analyst Eric Merlis stated: "June's non-farm payrolls were clearly below expectations, which stands in sharp contrast to the consecutive upside surprises earlier this year. However, the labor market is still consistently creating jobs, and there are hardly any signs of wage growth accelerating." "As labor force participation weakens and hiring cools, the Federal Reserve's decision last month to stand pat no longer appears to be a policy mistake, but rather a cautious and patient approach. Meanwhile, the market is repricing: with the inflation debate ongoing, the likelihood of future rate hikes is decreasing." (Golden Ten Data)