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The U.S. Federal Reserve has sounded increasingly hawkish of late, with its members repeatedly raising the prospect of a rate hike in either September or December of this year. Tough talk from the Fed is nothing new, but there may be some new thinking behind it now (more on that in a minute).
The Fed’s rate-increase rhetoric has been primarily attributed to improvements in the U.S. employment data, so all eyes were on the latest U.S. non-farm payroll report last week as investors tried to gauge how the U.S. labour market’s current momentum might affect the Fed’s tightening timetable.
The latest data proved disappointing. The headline number came in well below consensus expectations and the details showed that momentum in the most cyclically sensitive parts of the U.S. labour market has continued to slow.
Here are the key details from the latest U.S. non-farm payroll report: