US: Weak jobs report takes June hike out the picture – TDS

Research Team at TDS, notes that the pace of US jobs growth declined to a very sub-par 38K pace in May, falling well short of the market consensus for a more robust 160K rise.

Key Quotes

“Besides the disappointing headline print, the negative net revision to prior estimates suggests that underlying labor market momentum has weakened.

The disappointing performance (weak headline print along with the negative net revisions) will certainly cause some consternation at the Fed and will keep a June hike off the table.”