Today’s news of slowing job and wage growth has mortgages in retreat from another run towards 7 percent, and the 10-year T-note down to 5.01 percent from a 5.2 percent May high. A Fed pause at its June 29 meeting is again a medium probability.

The employment numbers provide substantial support for Federal Reserve Chair Ben Bernanke. In the last month he made plain his belief in a soon-ahead inflation-dampening economic slowdown, and his desire not to overdo the Fed’s 2-year, 16-hikes-so-far campaign. For his pains he has been widely criticized as an inflation-fighting pantywaist.

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