The strong employment figures released Friday keep the Federal Reserve firmly on track to raise interest rates by a half-percentage point at its meeting in two weeks and again in late July to cool high inflation.
Employers added 390,000 jobs in May, the Labor Department said Friday. The unemployment rate held steady at 3.6% as the number of people seeking work increased. Wages rose 0.3% from April, continuing a deceleration that—if it is sustained—could make Fed officials slightly less anxious about an overheating labor market.
With Fed officials largely united on the need for half-point increases at their June and July policy meetings, the debate has shifted to what should occur at the following meeting in September.
The jobs report is unlikely to influence that debate significantly because Fed officials have said they are more focused on monthly inflation readings right now and because there will be three more monthly employment reports to digest before the September meeting. To ease concerns about high inflation, Fed officials would like to see the pace of job growth slow, labor-force growth pick up and wage growth moderate.
Consumer prices rose 6.3% in April from a year earlier, slowing from 6.6% in the year through March, as measured by the Commerce Department’s personal-consumption expenditures price index, which is the Fed’s preferred gauge. So-called core prices—which exclude volatile food and energy prices—increased 4.9% in April from a year earlier, down from 5.2% in the year through March. The Fed seeks average annual inflation of 2
Source https://www.wsj.com/articles/may-jobs-report-keeps-fed-on-track-for-half-point-interest-rate-rises-11654267203
Ok any one have an idea on how raising interest rates lowers inflation. I can see to move money for m banks to stocks has definite cause and effect.
I can see raising interest will devalue stocks and money will be moved for m the market blue chips to Treasury and cd's bonds ect.
I do not see how the rates directly influence inflation.
I can see slowing the economy by small adjustments up but how that directly utilized that our supply chains causing inflation and oil exchanges because federal adjustments to interest become affordable.
They printed how much money for their " Infrastructure bill?" All of this is a deliberate act to obliterate the American dollar value and crash the value of our country.
We don't need to read this garbage. If the reserve cranks up the interest rates tomorrow at a higher level it will only ease massive recession which is what we are already in. Stop being such an idiot. it's fkin embarrassing.
one of the few based in reality…keep up the good fight 
"It's coming..." 
@BigGame90
You ain't kidding!
Homes down here are on the market a few days & gone with people getting over the asking price. And these are not young people laying out close to 2 to 4 million million scooping up these homes. We're 4 blocks off the intracoastal waterway with no fixed bridges & people 4 blocks east are getting 4 to 6 million. Many of these are cash purchases completed in days.
Unfortunately, this increase (with more to come) will definitely impact 1st time home buyers with average credit & those looking to get bigger homes. In the meantime, rental properties have increased by 25% but we've decided not to raise the rent at any of our properties. Absolutely no reason to take advantage of people who pay their rent on time just because you can. Two of the renters work for my wife's Property Management company & another single Mom works 2 shifts @ Chili's as a waitress during lunch & bartender @ night while her Mom watches the kids. Don't know the scoop on the other 2 properties.
To us, it's more of a loyalty thing rather than a financial decision. Frankly, our renters need the bucks more than we do. Why make a tough situation tougher, right?
Again, what is 'coming'?
@Midnight1
That's awesome of you! That's why your renters stay loyal to you. The US problem is when banks and funds start buying and hording homes. That's also causing the increases in home prices. I think right now buying is really the fear of people thinking the price will continue to go up. However, as banks tighten the loan requirements, it prices out a larger group of buyers. So when properties sit unsold or have price reductions (which I'm seeing more and more often as of late), home prices will need to come down as rates increase to fit some buyers. We'll be in a major problem when prices come down and banks are continuing to make it harder to get a loan approved as rates rise, FICOs are needed to be higher, and banks are not buying mortgages like they used to. Cash buyers will not be forking over loads of cash over asking for much longer. That's why homes are continuing to see reductions as homes are sitting on the market longer and supply is going up while demand is going down. The decline has started in the financial markets, soon to be the mortgage/ home markets.
@BWS77 - A major decline is coming, it's already started. Ever check out the markets? Now what do you think will happen as rates continue to rise?
@BWS77
Do you remember 2008?
Do you remember 2000/02?
Do you remember 1987 ?
Do you remember 1929-32 ?
throw it in a blender and top it off with 70s style inflation and that is what we are going to see.
the entire system is inflated and vastly over leveraged….what is coming is systemic contagion in the worlds financial system.
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