May jobs number is an outlier, but still puts the Fed on hold: Goldman's Hatzius

Posted To: MND NewsWire

Friday's disappointing jobs report is likely an anomaly, but it was bad enough to wipe out any chance that the Federal Reserve will raise interest rates this month, Goldman Sachs Chief Economist Jan Hatzius said Friday. Expectations for a June hike had risen after minutes from the Fed's April meeting showed policymakers were likely to raise rates if data pointed to second-quarter growth — and if labor market improvement continued. Then on Friday, the Labor Department reported the United States added just 38,000 jobs in May, well below expectations for 162,000 positions. Hatzius said the report was likely an outlier. "It's not really consistent with … the vast majority of indicators we're getting. We're not seeing a spike in [unemployment] claims. We're not seeing a deterioration...(read more)

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