More likely Fed could ease bond buys
WASHINGTON - The Federal Reserve could now be more likely to slow its bond purchases in the next few months, after a jobs report that was stronger than expected today.
The government reported that employers added 195,000 jobs in June, and many more in April and May than previously thought. The job market is showing surprising strength and resilience in the face of tax increases, spending cuts and economic weakness overseas.
The June job gain was fueled by consumer spending and the housing recovery. Hiring was especially strong among retailers, hotels, restaurants, construction companies and financial services firms.
Paul Edelstein, an economist at IHS Global Insight, says, "The numbers that we're seeing are more sustainable than we thought." He says, "We're seeing better job numbers, the stock market is increasing and home prices are rising."
The monthly jobs report also showed that pay rose sharply last month, and is outpacing inflation.
Despite the job gains, the unemployment rate remained at 7.6 percent, as more people began looking for work.
In the aftermath of this morning's report, stocks posted solid gains and then retreated a bit before again advancing.
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