Jolly Jobs

Despite just 138,000 net new May jobs and downward revisions to March and April, US job growth is solid and well above the level needed to absorb new job entrants. To wit, the unemployment rate fell to 4.3%, the lowest rate since 5/01. But weak wage growth and weak inflationary pressures suggest that the unemployment rate can fall further, thus allowing the Fed to continue to leisurely raise rates.