STORY: A report from the U.S. Labor Department said the economy added 256,000 jobs last month, which was above the highest estimate in a Reuters poll of economists and the most since March.
Meanwhile, the unemployment rate fell to 4.1% from 4.2%.
"When you have a strong economy and a tight labor market, there's a good chance that wage prices could accelerate, and that is inflationary. Why is that so bad? Well, we've spent a couple of years tackling inflation," says Diton
"The Fed raised rates 11 times, brought inflation down from over 9% to the twos, didn't reach their 2% target, but got pretty close... now we're seeing a bottoming of inflation, actually prices ticking up again. What does that mean? The Fed will probably not cut rates anywhere near where the market thought it would just a few months ago."
