Tags: jobs report | economy | federal reserve | rates
Image: Here's What You Should Be Thinking About Before This Week's Jobs Report
(AP file photo)

Here's What You Should Be Thinking About Before This Week's Jobs Report

Thursday, 06 Aug 2015 12:16 PM

There are only two jobs reports to go before the next FOMC meeting, when the U.S. central bank could raise rates for the first time in nine years.

The Bureau of Labor Statistics is due to publish the first of these two reports — the Non-Farm Payrolls number for July — at 8.30am on Friday. 

We asked Dan Moss, executive editor for economy at Bloomberg News, what we should be looking for in this closely-watched report.

DAN MOSS: It might be almost about what we’re not looking for. The context here are the comments the Fed has made recently about the labor market and the fact that this is the penultimate jobs report before the September meeting of the FOMC. When it comes to raising rates, TD Securities calls it a case of show me why I shouldn’t, as opposed to why I should. Chair Yellen emphasized in Congress sooner and shallower as far as interest rates are concerned.

All you really need is for this number to keep us on track for average employment growth of around 200,000 and the case remains for an interest rate hike this year, possibly as soon as in September.

Other things have zigged and zagged but this aspect of the labor market has been remarkably consistent. It doesn’t need to be a massive increase in job growth, it just needs to be consistent with what we’ve seen for the last couple of years.

Clearly the ECI number last week was a big disappointment and the optics were terrible, the worst since 1982, which is generally seen as a poor year for the U.S. and the world economy. Fed officials still seem to have faith that as the labor market tightens that will have an upward pressure on wages.


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There are only two jobs reports to go before the next FOMC meeting, when the U.S. central bank could raise rates for the first time in nine years. The Bureau of Labor Statistics is due to publish the first of these two reports - the Non-Farm Payrolls number for July - at...
jobs report, economy, federal reserve, rates
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2015-16-06
Thursday, 06 Aug 2015 12:16 PM
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