US rates lift off closer on jobs data

US employers added 215k jobs in June, slightly below markets estimates of 223k, according to the US Labor Department. Unemployment held steady at 5.3%, a 7 year low. There were 14k of upward revisions to the previous two months jobs data. The jobs growth was broadly based and confirms that nearly 3m jobs were added in the past 12 months. This was seen as enough by traders for the Fed to begin to raise US interest rates with the market now firming towards September as the first hike. Similar jobs data in August would all but confirm it. Last week we saw Atlanta Fed president Dennis Lockhart say the economy is ready for the first interest rate increase in 9 years and it would take a ‘significant deterioration’ in data to convince him not to move in September. Mr Lockhart is seen by markets as a ‘centrist’ in the ongoing debate between the ‘hawks’ and the ‘doves’ so his views have been viewed with more weight than usual.