Withholding tax collections continued to grow at a strong pace through the period ended June 23. The annual growth rate has hit a plateau around +6% after accelerating for a couple months in the normal cyclical pattern. The peak of this cycle is due this month. So far, the pullback has been minimal. This has implications for the June jobs report, which in turn has implications for when the Fed will try to implement the first rate increase. Strong withholding tax collections are also allowing the Treasury to pile up a record pile of cash. That also has implications for the Fed’s effort to raise rates.