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Did The Jobs Machine Take a Breather as Well?

July 11, 2023

Last month, the Federal Reserve Board took a breather from raising rates. They went into “wait and see mode” in order to determine what they would do next. Well, one data point they were waiting for arrived last Friday – the jobs report. Up until now the jobs machine has not taken a breather at all, and the strong employment situation has been putting upward pressure on inflation. We are sure that the Fed is not rooting for the economy to cut jobs, but a lighter pace of jobs growth would be something we expect they would be hoping to see. Thus, they waited — what did they see?

real-estate-Queens-NY-forecast-optimism-2021

The addition of 209,000 jobs was in the range of expectations. Expectations rose because of a strong ADP private payroll report the day before the job report was released. The headline unemployment rate dipped one tick to 3.6%. The previous two months of reports were revised downward by 110,000 jobs and part-time employment grew—both signs of possible weakness.  In addition, wage growth came in at 0.4% monthly and 4.4% year-over-year – slightly higher than expected. These numbers were seen as mixed – the number of jobs added was moderate, but wage growth continues to be elevated.  Certainly, this gives the Fed some food for thought when they meet in a few weeks. 

Speaking of inflation, this week we will see the Consumer and Producer Price Indices. These indices are also watched by the Fed very closely. Last month, the May numbers showed inflation easing a bit more. We sure could use some more good news this month if the Fed would consider extending their pause when they meet in two weeks, something now considered unlikely. If they decide to wait until the next meeting in September, we can officially call it a summer vacation instead of a pause! But first, the inflation data. 

Source: Origination Pro

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Testimonials

Eli N

Benny and Phil were great to work with! they assisted us in every aspect of the process even when it wasn’t their job. They explained every step and guided/advised us on the best course of action. Their fees were more than fair and their integrity was at a level far above ANY lawyer or mortgage broker we have ever dealt with.

Joe D.

Philip Loria made the mortgage process quick and easy, and also found ways to save us money. He was always on top of things, very accessible, and his communication is top notch. I will recommend Philip Loria and Amerimutual Mortgage highly to any of my friends, family or colleagues.

Joe D. Long Island, NY
Ninfa Brusca

Philip and Benny Loria were very knowledgeable and professional. They exceeded all our expectations and were a pleasure to work with. They were both were just genuinely nice guys. They listened to all our concerns and did everything in their power to accommodate our needs and make feel comfortable throughout the whole mortgage process. I recommend Amerimutual Mortgage to anyone who is looking for a mortgage.

Ninfa Brusca Tuckahoe, NY
Lenny P., Occupation: Real Estate Development

Richard, I wanted to thank you for all your help and hard work. I am so glad our refinance was a success. You were very diligent and dedicated to getting me the best rate possible. I truly enjoyed working with you and will recommend your services to all our friends and family.

Lenny P., Rye, New York
Nick Tsatsaronis

Philip Loria, assisted me with my refinance. Thank you so much for all of your time and hard work. You made refinancing my house easy and stress free. I wouldn’t recommend anyone else. I will definitely use Amerimutual Mortgage for any future needs, and recommend them to anyone who needs a mortgage.

Nick Tsatsaronis Flushing, NY
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