Senior Economist at NerdWallet, focused on economic data/trends, jobs, home affordability & consumer spending, saving, debt and credit. I also lead our data studies team.
Job and wage growth slowed slightly in June, adding more evidence to the case of a cooler labor market. Further, the high readings of the past few months were revised down. Though Wednesday’s May job openings levels ticked up, the movement was slight, the rate hardly budged and those figures are subject to revision. All that to say, many of the hot takes spun up on this “increase” earlier in the week were overstated. The Fed looks for a modestly slower labor market to cool inflationary pressures; “modest” because a dramatic slowdown would indicate they should’ve already cut interest rates. As it stands, the labor market remains healthy and gradually cooling, supporting a potential September rate cut. Consumers have been under this high interest rate environment now for a year, and a greater share of households are no doubt feeling the pressure. When rates come down, businesses and consumers alike will feel the relief. Until then, it appears likely that everyone will continue reining in discretionary spending. #economy #jobs #labormarket
