Bond, Inflation, rates, Purchasing Power

Bond, Inflation, rates, Purchasing Power

One of the biggest reasons bond investors are so confident that the Fed won’t need to move aggressively to boost rates and trigger a bond-market selloff is because sustained improvement in the U.S. labor market remains elusive.

Employers added just 142,000 jobs last month, according to a Labor Department report, the fewest this year and below even the most pessimistic estimate in a Bloomberg survey. The latest payrolls data halted a six-month streak of employment gains surpassing 200,000, which was the most since 1997.

On an annual basis, growth in hourly earnings in the past five years has been the weakest over the course of any expansion since at least the 1960s, data compiled by Bloomberg show.

Without more jobs and higher wages, there’s little chance Americans will spend enough to spur faster inflation.

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