September´s jobs report gave a little bit to everybody. Will the Federal Reserve cut interest rates?
Here is their view, courtesy of eFXdata:
CIBC Research discusses its reaction to today’s US jobs report for the month of September.
“The US labor market appears to still be on relatively healthy footing despite the downside miss on payrolls for September. The 136K jobs created were only marginally below the consensus forecast and there was a large upward revision to the prior two months (+45K). Furthermore, aggregate hours worked on a three-month average annualized basis were up by 1% in Q3, an acceleration from 0.5% in the prior quarter, and the large employment gain on the household survey sent the unemployment rate two ticks lower to 3.5%, while the participation rate remained unchanged. The main negative was the flat average hourly earnings figure, which left the annual rate at its slowest pace in over a year at 2.9%,” CIBC notes.
“Overall, these data are constructive enough to allow the Fed to skip October in our view, and cut in December,” CIBC adds.
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