US economy adds 209K jobs in June, lighter than estimates

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Carlyle Group co-founder and 'How to Invest' author David Rubenstein discusses artificial intelligence revolution, the growing 2024 candidate field, the impact of Trump's indictment on his campaign and current consumer sentiment.

U.S. employers added 209,000 jobs in June, the lowest number since 2020, but still a sign that the Federal Reserve will continue on its rate-tightening cycle this year and perhaps into early 2024. The unemployment rate held steady at 3.6%. 

Growth in April and May were revised marginally lower to 217,000 and 306,000, respectively. 

Still, it may present a conundrum for policymakers who continue to wrestle with consumer inflation of 4%, twice the Fed's preferred level. Plus, pay continues to climb, another inflationary headwind. 

Average Hourly Earnings: 

+4.4% to $33.58

Source: Bureau of Labor Statistics 

Private Education: +73,000

Government: +60,000

Healthcare: +41,000

Construction: +23,000

Professional Services: +21,000

Manufacturing: +7,000

Retail: -11,200

Source: Bureau of Labor Statistics 

Ninety-two percent of market participants still anticipate a 25-basis-point rate hike this month, according to the CME Group's FedWatch tool. That compares to just 7.6% of traders who expect the Fed to hold rates steady at the current range of 5% to 5.25%. Policymakers will meet on July 26. 

The minutes from the last meeting, released earlier this week, showed nearly all Fed officials supported additional interest rate hikes amid signs of sticky core inflation. 

Fed Chairman Jerome Powell, speaking at a conference in Madrid last week, echoed the same sentiment. 

«We expect the moderate pace of interest rate decisions to continue,» he said following the pause in tightening instituted in May. 

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