The often-gloomy David Rosenberg of Gluskin Sheff says the June jobs report looks pretty strong, and indicates consumer spending should be strong through the summer months. Rosenberg says that in addition to the solid jobs-added number, the report also showed that income was up the most since February, and year-over-year wage growth was about 2.5% despite little or no overall inflation, showing “organic, real” purchasing power gains. He also says the Federal Reserve shouldn’t lower the 6.5% unemployment rate target it set as a guideline for when it would pull back from its stimulative policies. He says the Fed policy was designed to combat a potentially destabilizing, deflationary environment that the “fiscal cliff” might cause. But that’s not what’s happening now, he contends, saying the economy is growing moderately and appears to be picking up steam as we head into the second half of 2013.
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