80% Likelihood Of Fed Rate Hike Next Month Thanks To Strong Job Gains
Economists say Friday’s US jobs report may show enough gains in the labor market to justify the Fed raising rates next month.
The news pushed the odds of a rate increase at the Fed’s December meeting to 78%, the highest level since March, Bloomberg reports. Payrolls rose by 161,000 in October, compared to the 191,000 job gains reported in September, according to the Labor Department. Bloomberg's survey of economists shows employers are expected to have added 173,000 workers in October, up from 156,000 in September.
A strong employment report could "authorize the rate hike in December,” says MCP Asset Management economist Hiroki Shimazu, making it almost a certainty the Fed will raise rates unless there’s mayhem in markets following the presidential election. [Bloomberg]