The argument for a June interest-rate hike from the Federal Reserve has evaporated.
Economists and investors largely agreed that Friday's disappointing employment report for May—the U.S. economy added just 38,000 new jobs—all but eliminated the chance that Fed officials would tighten policy when they meet June 14-15 in Washington, and may make it difficult for them to raise in July.
"Today's labor market report is sobering and suggests that the labor market has slowed," Fed Governor Lael Brainard told an audience in Washington. "Prudent risk management implies we should wait for additional data to provide confidence that domestic activity has rebounded," said Brainard, who has previously argued for patience on raising rates.
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