Jobs Surge to Reignite Fed Debate Over How Restrictive Rates Are
- Payrolls beat estimates in May, pushing back bets on rate cuts
- Officials are likely to continue talks at next week’s meeting
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Friday’s eye-popping jobs number is likely to energize a debate already dividing Federal Reserve officials over whether their policy setting is slowing the economy as much as they had predicted.
Employers added 272,000 new jobs in May, exceeding all estimates in a Bloomberg survey. On top of that, average hourly earnings over the past 12 months ticked up after three straight declines that had begun to reassure the central bank.