It is understood that the Fed is once again concerned about employment, and not just inflation. Market strategists also know that the job creation figures for July may have been affected by the weather, with Hurricane Beryl. The next employment report, at the end of the week, will provide more clarity, without necessarily affecting convictions. “The trend remains a rapid deterioration in labor market conditions,” judges Bruno Cavalier.
Oddo BHF Securities’ chief economist illustrates this belief with the Atlanta Fed’s wage index, which distinguishes between employees who have changed jobs and those who have not. “Companies have largely frozen hiring, and employees are no longer resigning en masse to get better-paid jobs. As a result, wage gains are slowing.”
