Strong Nonfarm Data Doesn't Signal Fed Rate Hikes, China Galaxy Research Says on June 7

According to Jin10 data on June 7, China Galaxy Securities' macroeconomic research team said strong May nonfarm employment data does not indicate the Federal Reserve will raise rates this year. While the May labor market data showed employment performing better than market expectations, the research team noted there is insufficient structural evidence of labor market acceleration that would push inflation upward. The firm believes markets are overpricing rate hike risks, though near-term economic data cannot yet disprove such expectations, leaving the Fed in a "data-dependent" stance.
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