The Fed's Mixed Reaction to Non-Farm Payrolls

There was a collective sigh of relief sky when those non-farm payrolls numbers came out on Friday because they didn't show that big, what half a million increase that we saw in the ADP numbers on Thursday. In fact, quite encouraging as far as the Fed's concerned. But if we do look at these numbers, because it is still tight, but the growth in jobs was well below consensus, 209,000 plus,. We had a downward revision on the previous numbers. The unemployment rate is down to 3.6%. And then the average hourly earnings up 0.4% month on month, which is the same as May. So not good from the Fed's viewpoint.