The May employment report is being dubbed the most important in years, with the power to shape market expectations for weeks, if not months to come.
Interest rates have moved higher ahead of it, stocks have traded anxiously for several weeks, and Fed officials have fanned expectations that they are getting ready to consider downsizing their $85 billion a month in bond purchases. The 30-year mortgage has even crept above 4 percent for the first time in a year last week.
But there’s also a good chance the May report, expected to show 170,000 nonfarm payrolls, simply just shows just that – a status quo of sluggish jobs growth, much like last month. It also may do little to clarify the Fed’s next policy move, as markets had been hoping.
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