Analysis: June Jobs Report Weakens Case for Larger Fed Rate Cut This Month

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Analysis: June Jobs Report Weakens Case for Larger Fed Rate Cut This Month
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The June jobs report should ease Fed officials’ concerns about a slowdown but still leave the door open to a rate cut at their next meeting

The strong June employment report should ease Federal Reserve officials’ concerns about a sharper-than-anticipated U.S. economic slowdown, but still leave the door open to an interest-rate cut at their meeting this month.

Officials in June appeared to set a low bar for at least a quarter-percentage-point reduction in their short-term benchmark rate to prevent against the economic outlook seriously worsening. But the robust job gains posted last month weaken the case for the half-point cut some market participants anticipated...

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