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Strong June Jobs Report Could Mean Another Rate Hike

The Federal Reserve

The labor market picked up in June after a poor performance in May, and that means another Fed rate hike is still on the table for 2016.

The Labor Department said stronger hiring by restaurants, retailers and healthcare providers boosted jobs by 287,000 last month, Bloomberg reports. That’s a big turnaround considering May job growth was revised from 38,000 down to 11,000.

Yet despite strong hiring in June, average hourly earnings inched up just 0.1%, and investors only see a 25% chance of another rate hike this year. If the Fed is going to raise rates, they have three more times to do it—they meet on July 26 to July 27, Sept. 20 to Sept. 21, and Nov. 1 to Nov. 2. [Bloomberg]