“Just as Wall Street appeared to come to terms with the idea of high interest rates sticking around for longer, a cooler-than-expected jobs report on Friday brought the idea of rate cuts back into the conversation,” the New York Times reports.
“The Labor Department reported that job and wage growth in April came in lower than economists had expected, a shift after months of piping-hot labor market reports. The findings rekindled hopes that the Federal Reserve — which has been looking for signs that interest rates are slowing the economy — may yet cut rates before the end of the year.”
Wall Street Journal: “Friday’s report will keep hope alive for a late-summer interest-rate cut from the Federal Reserve, because it eases fears of an overheating economy. Still, it won’t change much for the Fed’s immediate outlook, in part because another employment report is due before officials’ June 11-12 meeting.”
Paul Krugman: Still no stag and not much flation.
