The weak employment report for May should eliminate any possibility that the Federal Reserve Board will raise interest rates at its June meeting next week. At least for this purpose, the bad news is good news. But we should still be asking why the Fed has its finger on the trigger in the first place.
No one knows how tomorrow's October jobs report will affect Federal Reserve policymakers' views about whether to start raising interest rates in December. But here are some things to consider in assessing whether the job market is making the "continued progress toward maximum employment" that the Fed wants to see.