Federal Reserve officials are taking in the results of the August jobs report just 10 days ahead of the September FOMC meeting. According to the US Bureau of Labor Statistics, 142,000 jobs were added to the labor market in the past month, below estimates of 165,000.
Yahoo Finance Fed correspondent Jennifer Schonberger reports on the current consensus as to how the Fed may cut interest rates at this month’s policy meeting as officials enter their “blackout period,” limiting the commentary they are allowed to give.
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Luke Carberry Mogan.
All right, we’ve got fresh commentary as we mentioned out from the fed ahead of that blackout period.
That’s going to begin at the end of today, 10 days before their September FO MC meeting here with more.
We got Yahoo Finance is fed correspondent Jennifer Jennifer.
Good morning Ma with the job market rebounding in August from July but still cooling those fed funds futures.
As you guys were discussing our fluctuating wildly this morning last I checked a traders are pricing in nearly 60% chance of a 50 basis point rate cut for September.
Today is the last day before the blackout period before the policy meeting on September 17 and 18.
And we did hear from New York fed President John Williams and prepared remarks before the jobs report came out in which he said the time has come to cut rates.
Speaking in New York at the Council on Foreign Relations, William said quote, it is now appropriate to dial down the degree of restrictiveness in the stance of policy by reducing the target rate for the federal federal funds rate.
He says the natural step now is down now that he has gained confidence that inflation is sustainably falling back to 2% and the labor market is cooling from an overheated state.
He says interest rates can move down to quote a more neutral stance over time.
Now, William said again and prepared remarks, comments about the labor market in which he said that the job market is cooling from an overheated state.
He thought it that with the unemployment rate before 0.3% it was had it ticked up but was still low by historical standards.
He expects the unemployment rate to end the year at four and a quarter.
Remember today, the report saying that the unemployment rate now stands at 4.2%.
Now he is on the lookout for any further significant deterioration in the job market and what that could mean for the policy path.
Meanwhile, we also heard from Chicago that president often will be late on Thursday who told market watch that the direction is clearly down and that he expects multiple rate cuts next year as what the fed has projected already.
Guys that you finances Jennifer Jennifer, I see the capital behind you.
So you must have a big interview coming up will be staying tuned for that later on for more on the state of the labor environment and the employment situation, acting labor secretary.
So we know it, we know it looking forward to it.
Jennifer.
Thanks so much.