Federal Reserve official Hammack commented on the latest jobs report, noting that the labor market is roughly in balance with an unemployment rate of 4.3%, which she considers indicative of full employment. Despite this, she raised alarms about persistently high inflation, which contrasts with the stable job market. Hammack stated that the Fed's inflation target is 2%, essential for fostering sound economic decisions and long-term growth. She warned that if inflation expectations shift among consumers and businesses, it could necessitate decisive action from the Fed. The recent revisions to job data indicate an improving labor market, suggesting that the Fed may need to consider future rate hikes. Currently, the market reflects a 44% probability of a rate increase in September, a significant rise from previous assessments, with a December hike now fully anticipated. Additionally, US 2-year treasury yields increased by 9.8 basis points to 4.15%.