Is The Market Pricing For A 1970s Replay?

May payroll data was hot, effectively closing the door on a labor-market justification for a Fed rate cut this year. The article argues the late-week pullback was not about stagflation, but the stronger jobs print reinforces a more hawkish policy backdrop. Market implications are meaningful because the path of interest rates and yields is being repriced.

Analysis

May payroll data was hot, effectively closing the door on a labor-market justification for a Fed rate cut this year. The article argues the late-week pullback was not about stagflation, but the stronger jobs print reinforces a more hawkish policy backdrop. Market implications are meaningful because the path of interest rates and yields is being repriced.