Bloomberg Evening Briefing: Fed Closes in on Vindication as Jobs Report Crushes

Bloomberg Evening Briefing: Fed Closes in on Vindication as Jobs Report Crushes

Where is Team Recession now? With new, surprisingly good job numbers for September showing Fed Chair Jerome Powell and his colleagues on the cusp of sticking that soft landing, the US unemployment rate—amid fears the central bank waited too long to cut ratesactually went down. US job growth last month topped all estimates and wage growth accelerated, reducing the odds the Fed will opt for another big interest-rate cut in November. Indeed, combined with data earlier this week showing demand for workers is still healthy while terminations remain low, the payrolls report is likely to alleviate concerns that the labor market is deteriorating. The figures also showed fewer Americans were working part-time for economic reasons and people who recently lost their jobs were able to find work elsewhere. The Fed has “a better chance of getting this right and not being behind the curve given this report,” said Laura Rosner-Warburton, a senior economist at MacroPolicy Perspectives.

Stocks ended Friday close to session highs following the stronger-than-expected jobs report. Treasuries sank as traders recalibrated their bets on the size of the Fed’s next rate cut. Apart from Friday’s labor-market report, a slew of other economic data this week painted a picture of a strong US economy. Here’s your markets wrap.

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