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Despite jobs bombshell, Fed could still hike rates in July

Jobs taking June off the table for Fed?

There's next to no chance the Federal Reserve will raise rates this month after Friday's shockingly weak jobs report for May, but strategists say the central bank could still find a way to hike in July if other economic data shows that the U.S. economy is not toppling over.

The 38,000 nonfarm payrolls reported for May and the dramatic 59,000 downward revisions to March and April jobs, plus a series of miserable elements, like a 0.2 point drop in the participation rate, all raise warning flags.

Economists had expected 164,000 nonfarm payrolls and had included an estimated decrease of about 35,000 striking Verizon workers. But the number was worse all around, aside from the 0.2 percent increase in average hourly wages which was as expected.