Strong Jobs Reports Equals Higher Treasury Yields And Mortgage Rates (But Continued Slow Wage Growth Puts Damper On Inflation)

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Today’s jobs report for May was pretty impressive. An impressive jobs report translates to The Federal Reserve, all other things being equal, continuing to raise rates.

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The number of employed Americans, 155,474,000, has broken another record.

The number of unemployed Americans dropped to 6,065,000, a low not seen since January 2001. This pushed the nation’s unemployment rate down a tenth of a point to 3.8 percent, a level not seen since April 2000.

The number of employed women 16 and over set another record (72,690,000); the number of employed men 16 and over is at an all-time high (82,784,000); and so is the number of employed African-Americans (19,092,000).

The unemployment rate for African-Americans dropped to 5.9 percent, a record low.

The unemployment rate for women 16+ is now at 3.6 percent, a low not seen since 1953.

BUT, hourly wage growth remains low at 2.7% YoY when compared to The Great Recession. Hence, inflation is not around the corner.

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