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Strong jobs report says rate hikes are coming

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Lazear: Fed should raise rates ASAP

May's strong 280,000 employment gain reaffirmed market expectations that September may be the month when the Fed raises interest rates for the first time in nine years.

If the solid jobs report is confirmed by other economic data, it suggests that the second quarter may not be quite as sluggish as some fear, and the Fed, therefore, may be more willing to move to end the era of zero interest rates.

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"It re-establishes momentum and keeps them on track for a September rate hike. That's the bottom line," said Deutsche Bank's chief U.S. economist, Joseph LaVorgna. He had expected 275,000 nonfarm payrolls while Wall Street's consensus was for just 225,000 jobs.