Jobs Report Better Than Expected

The recently released jobs report showed U.S. employment during July increased by 528,000 -- nearly double the amount expected, representing a decrease in the unemployment rate to 3.5%.

With this strong employment report, the Fed, in our view, will continue on the path of aggressively increasing short-term interest rates. Moreover, since the jobs market is improving, the Fed has room to lean into its inflation control mandate.

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