Update (10/04): September job creation report comes in far higher than expected, reducing chances for 50 basis point cut in November

[SuperSpreader]

Buy a gas guzzler!

[TUFKAK]

I was loving my guaranteed several hundred monthly payment in my Hysa 

[outsida]

8 hours ago, TUFKAK said:

I was loving my guaranteed several hundred monthly payment in my Hysa 

[Commissar SFLUFAN]

Fed Chair Powell says the US economy is in 'solid shape' with more rate cuts coming

APNEWS.COM

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Federal Reserve Chair Jerome Powell has signaled that more rate cuts are in the pipeline, though their size and speed will depend on the evolution of the economy.

 

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Federal Reserve Chair Jerome Powell signaled Monday that more interest rate cuts are in the pipeline, though their size and speed will depend on the evolution of the economy.

 

Wall Street investors and economists are weighing whether the Fed will follow its larger-than-usual half-point cut made earlier this month with another hefty reduction at either of its upcoming meetings in November or December. At their meeting Sept. 18, Fed officials penciled in two more quarter-point rate cuts at those final 2024 meetings.

 

In remarks before the National Association for Business Economics in Nashville, Tennessee, Powell said the U.S. economy and hiring are largely healthy and emphasized that the Fed is “recalibrating” its key interest rate, which is now at about 4.8%.

 

He also said the rate is headed “to a more neutral stance,” a level that doesn’t stimulate or hold back the economy. Fed officials have pegged the so-called “neutral rate” at about 3%, significantly below its current level.

 

Powell emphasized that the Fed’s current goal is to support a largely healthy economy and job market, rather than rescue a struggling economy or prevent a recession.

 

“Overall, the economy is in solid shape,” Powell said in written remarks. “We intend to use our tools to keep it there.”

 

 

[Jason]

No more cuts before the election right? 

[Commissar SFLUFAN]

Just now, Jason said:

No more cuts before the election right? 

 

That's correct.

[Commissar SFLUFAN]

September job market report came in far higher than expected which means that a 50 basis point cut in November is probably/definitely off the table.

 

U.S. job creation roared higher in September as payrolls surged by 254,000

WWW.CNBC.COM

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Nonfarm payrolls were expected to increase by 150,000 in September, according to the Dow Jones consensus forecast.

 

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The U.S. economy added far more jobs than expected in September, pointing to a vital employment picture as the unemployment rate edged lower, the Labor Department reported Friday.

 

Nonfarm payrolls surged by 254,000 for the month, up from a revised 159,000 in August and better than the 150,000 Dow Jones consensus forecast. The unemployment rate fell to 4.1%, down 0.1 percentage point

 

With upward revisions from previous months, the report eases concerns about the state of the labor market and likely locks in the Federal Reserve to a more gradual pace of interest rate reductions. August’s total was revised up by 17,000, while July saw a much larger addition of 55,000, taking the monthly growth up to 144,000.

 

Strength in job creation spilled over to wages, as average hourly earnings increased 0.4% on the month and were up 4% from a year ago. Both figures were ahead of respective estimates for gains of 0.3% and 3.8%. The average workweek nudged lower to 34.2 hours, down 0.1 hour.

 

“It was ‘wow’ across the board, much stronger than expected,” Kathy Jones, chief fixed income strategist at Charles Schwab, said of the report. “The bottom line is it was a very good report. You get upward revisions and it tells you the job market continues to be healthy, and that means the economy is healthy.”

 

 

 

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