US nonfarm payrolls rise in June

According to the US Bureau of Labor Statistics, nonfarm payrolls rose by 147,000 last month, while the unemployment rate dropped to 4.1%. 

Gregory Faranello, strategist at AmeriVet Securities, says these results allow Federal Reserve (Fed) Chair Jerome Powell to take a wait-and-see approach to monetary easing. 

However, private payrolls grew at the slowest pace since October. Additionally, the report showed a decline in private sector wages. The labor force participation rate also fell, likely reflecting the Trump administration's stricter immigration policies.

Economist at Nationwide Mutual Insurance, Kathy Bostjancic, believes the Fed will turn to monetary easing in September and will reduce the fed funds rate by 75 basis points by year-end. The central bank will take such a step to boost the slowing US economy, despite a likely temporary rise in prices stemming from import tariffs.