 The June jobs number is in 222,000 expectations stood at 170,000. Let's talk about it now with John Lansky, Chief Capital Markets Economist at Moody's Analytics. And John, your initial reaction here. Well, this report has something positive for everybody. I mean, it's speaking of a continuation of economic growth, 222,000 new jobs, well above expectations, 187,000 private sector jobs is above earlier views. But at the same time, wage growth was only two tenths of a percent for the month, telling me that inflation should remain well contained. Well contained, though, but that's a problem, especially for the Federal Reserve, which is looking to make its next rate hike. So a lot of people, in my opinion, would view this wage situation as a negative, right? Constant at 2.5 percent. Well, you know, they might, but I think this report very much keeps alive the prospects of another rate hike later this year. I would still expect the midpoint for Fed funds finishes the year at one in three eight percent. And moreover, this report is strong enough to still provide the Fed with the option of allowing for a passive reduction in their bond holdings by the final quarter of this year. So this doesn't fuel the argument that the Fed should delay a rate hike because of softening inflation? I don't think so. Not at all. We don't have that type of hard evidence at hand that recession risks have risen materially. I'll keep an eye on one thing, though. You know, recently we've had the 10-year Treasury yield jump in anticipation of reduced bond holdings by central banks worldwide. If the 10-year Treasury yield rises by enough to suppress home sales, then I believe that perhaps the Fed won't be able to follow through with their planned passive reduction of bond holdings and they may have to hold on that rate hike. But when we look at an economy that's creating north of 200,000 jobs for many months, and then we look at wage growth that's constant, what does that tell you? It tells you that perhaps employers just don't want to pay people. Maybe employers are doing the right thing. They realize that sales growth remains below average, that you're looking nowadays to get sales growth of 4% annually. I think most companies are looking at sales growth of 2% to 3%, they're doing the right thing. They're not getting carried away with labor costs. It's also telling me that this 4.4% unemployment rate is not the same 4.4% jobless rate that your father knew of. This is a different labor market. We have a relatively low rate, surprisingly low rate of labor force participation. We have a lot of people out that are out of the labor force, and I think that tells us that they're more than willing to reenter the labor force once more attractive job opportunities arise. All right, so there's still some slack in the labor market. There definitely is more slack than what otherwise might be inferred from this 4.4% jobless rate. All right, and just quickly for the markets, though, I mean, how are they digesting this jobs? Well, they're going to like this. A report has something for everybody, as I said. It tells us that the economy continues to grow, and as long as interest rates remain relatively low, the equity market's not going to be very picky about earnings growth. All they want to have is some assurance that we have something material in terms of earnings growth. For the people on the bond side, wage growth is well contained. It's not going to take off, telling me that perhaps we don't need a 10-year treasury of as high as 2.5%. All right, we'll be watching how this all plays out. Again, the economy adding 222,000 jobs in June and May and April's numbers were revised higher. John Lansky, thanks very much for coming back with us. Thank you, Scott. All right. I'm Scott Gamm, and you're watching The Street.