Does The May Jobs Report Influence the Fed's June Decision? By Hardika Singh

Central bank officials are expected to hold interest rates steady for their seventh straight meeting, and the recent jobs report most likely doesn't change much for them. Meanwhile, for the first time in more than two years the jobless rate hit 4%. And the red-blue divide underpins the Texas Stock Exchange's challenge to the New York Stock Exchange and Nasdaq. Read on for this news and more.

Top News Why the May Jobs Report Won't Change Much for the Fed

The May jobs report may not matter much for the Fed's deliberations about when to cut rates for two reasons. First, the report is strong enough not to set off any alarms about the health of the labor market, even if it offers glimmers of a continued cooling. Second, Fed officials have indicated an asymmetry to their approach to cutting rates.

U.S. Economy Hiring Defied Expectations in May, With 272,000 New Jobs

U.S. job growth burst past expectations last month while the unemployment rate edged up to 4%, presenting a mixed view of a labor market that has generally been cooling without overly troubling most workers.

Financial Regulation A Texas Stock Exchange Wants to Take on New York. The Odds Aren't Good.

The Texas Stock Exchange is looking to steal New York's crown as the center of U.S. capital markets. It has a powerful force behind it: red-state frustration with the perceived liberal agenda of Wall Street.

Forward Guidance Monday (all times ET)

10 a.m.: Employment Trends Index

Tuesday

6 a.m.: NFIB Index of Small Business Optimism

Research Canada's Loosening Labor Market Leaves Door Open For Central Bank

The increase in Canada's jobless rate to 6.2% in May leaves it 1.5 percentage point above the 2022 low, and shows ample labor market slack has opened up, CIBC Capital Markets' Katherine Judge says. The economist reckons the bounce seen in GDP for April appears to have been a one-off, so it likely leaves the Bank of Canada on track for another rate cut in late July. - Robb Stewart

Basis Points A risky style of trading is roaring back in popularity, driven by amateur traders who call themselves "degens" and pile into long-shot trades that proudly have nothing to do with conventional ways of assessing investments. Some are flinging cash at specific stocks or cryptocurrencies just to be part of a movement. Others are sticking around for the jokes and memes. - Hannah Miao and Gunjan Banerji The pace of growth in leisure and hospitality shows no signs of relaxing. BLS data for May shows employment in this sector added 42,000 jobs, above the average monthly gain of 35,000 added jobs over the last 12 months. Employment in food services and drinking places continued to trend up over the month with a gain of 25,000 as summer approaches. The results signal an ongoing recovery in these spaces, particularly as more consumers have adapted to higher prices and continue to prioritize spending on luxuries like travel. - Denny Jacob European stock markets and the euro fell early Monday following the advance of far-right parties in European elections and major losses for President Emmanuel Macron's alliance that prompted him to call a snap election. - Adrian Kerr Japan's latest GDP data confirms the economy is in bad shape, Moody's Analytics says. Momentum fizzled out after a post-Covid rebound and has yet to turn around, says senior economist Stefan Angrick. Households remain reluctant to spend as inflation outruns wage gains, even after strong spring wage talk results in 2023 and 2024, he says in a note. Business investment isn't meeting expectations, and exports struggle against headwinds including weak foreign demand and supply-chain snags. - Fabiana Negrinochoa About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [hardika.singh@wsj.com].

This article is a text version of a Wall Street Journal newsletter published earlier today.


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06-10-24 0715ET