 There was deceleration in wage growth. Average hourly earnings are up 3.9% over the past year. With the Federal Reserve seeing inflation data in the statistical neighborhood of where it wants it to be, it is expected to cut interest rates in September. That's if the job market continues to cool and inflation allows. The central bank would shift some of its attention away from the stable prices part of its mandate to increasingly focus on the other issue, which is maximum employment.