Weak U.S. Jobs Report Kills Hopes for June Fed Rate Hike

  • Economists say July rate increase from Fed now in question
  • Fed’s Brainard says labor market report is ‘sobering’

Gross on How Fed Will React to Today's Jobs Report

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The argument for a June interest-rate hike from the Federal Reserve has evaporated.

Economists and investors largely agreed that Friday’s disappointing employment report for May -- the U.S. economy added just 38,000 new jobs -- all but eliminated the chance that Fed officials would tighten policy when they meet June 14-15 in Washington, and may make it difficult for them to raise in July.