The US employment report for May shows a mixed picture. While payrolls surprised with a strong 339 thousand increase, other details point to a slowdown.

Apart from the robust job creation, the data indicate a cooling of the labor market. This allows the Fed to sit tight at the FOMC meeting on 13/14 June and at least pause on rate hikes.

The US central bank can then wait and see how things develop and, if necessary, tighten more at a later date.