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BLOOMBERG
US employers are gradually dialling back the pace of hiring and hourly earnings are moderating, offering some solace to Federal Reserve policymakers in their bid to wrangle still-elevated inflation.
Government data are projected to show payrolls in the world’s largest economy increased by less than 200,000 in May, down from average monthly job growth of about 370,000 over the past year. Earnings are seen rising 0.3% from the prior month, when they posted the biggest advance in a year.
Another report in the coming week is forecast to show the fewest open positions in two years. Although vacancies are still about 2 million above pre-pandemic levels, a fourth-straight monthly drop in April job openings would underscore a gradual loosening of the tight labour conditions that helped fuel inflation over the past year.
The latest snapshots of the labour landscape, which comes after White House and Republican negotiators reached a tentative deal to raise the US debt ceiling, will provide Fed officials with clues about the impact from tighter credit conditions, higher interest rates and brewing economic concerns.
Policymakers next meet on June 13-14 to decide whether another quarter-point hike in the benchmark rate is warranted after data this week showed faster inflation and resilient demand at the start of the second quarter.
Fed officials scheduled to speak in the coming week include regional bank presidents Thomas Barkin of Richmond and Patrick Harker of Philadelphia, along with board member Philip Jefferson.