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GS Stick To Rate Path View Post Payrolls

US OUTLOOK/OPINION
  • Goldman note the details of the payrolls report were “somewhat less positive” than the nonfarm beat would suggest, with a third month of downward revisions and underperformance in household employment.
  • Their composition-corrected wage tracker stands at +5.4% in Q2, unchanged from Q1.
  • In all, the report shows an “overheated labor market that is only beginning to slow”.
  • They continue to expect a 75bp hike in the FF rate at the July meeting, followed by 50bp in Sep and 25bp in both Nov and Dec.

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