Weekly Market Commentary 06/03/2016

The Fed’s decision whether to raise interest rates at its June 14-15 meeting became somewhat less complicated on Friday with the release of a highly disappointing jobs report for May. Heading into the week, the odds of a rate hike in June were low but rising thanks to the surprising strength of most incoming data plus some hawkish comments by several Fed officials. Indeed, at the April policy meeting, the Fed said that “if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress towards the Committee’s 2% objective” the central bank would be inclined to raise interest rates in June.