, Columnist
Job Growth Won't Change the Fed's Mind on Rates
There's no sign of inflation with so many people staying out of the labor market.
It will take more than that.
Photographer: Chip Somodevilla/Getty ImagesThis article is for subscribers only.
Although the July employment report was strong, it does nothing to fundamentally change the outlook for the Federal Reserve. And employment reports in future months are likely to similarly take a back seat to the most critical trigger factor for monetary policy: inflation -- or lack thereof.
The July employment report highlighted the growth trend in the U.S. labor market that we have seen since the Great Recession, with the number of jobs created exceeding forecasts while sending the unemployment rate lower.