Tags: fed | mester | jobs | rate hike

Fed's Mester Calls Jobs Growth 'Solid,' Sees Rate Hike: CNBC

Fed's Mester Calls Jobs Growth 'Solid,' Sees Rate Hike: CNBC

(Dollar Photo Club)

Friday, 07 October 2016 09:39 AM


U.S. jobs growth last month was "solid" despite having slowed from previous months, Cleveland Fed President Loretta Mester said on Friday, adding she continues to believe it appropriate for the Federal Reserve to raise interest rates.


"It's a solid number," she said on CNBC of the jobs report, which showed nonfarm payrolls rose 156,000 in September, below the 175,000 expected by economists. "This is very consistent with what we expected to see."
 

Mester noted that U.S. incomes continued to rise last month. "I think we're at full employment... It makes sense to move up the rate another 25 basis points," she said, referring to a modest quarter-point rate hike.


The unemployment rate rose slightly to 5 percent. "The unemployment rate is about at what my estimate of full employment is, natural rate of unemployment," Mester said.

Economists polled by Reuters had predicted the U.S. economy would create about 175,000 nonfarm payrolls last month, with an unchanged jobless rate of 4.9 percent.

"Remember 75,000 to 120,000 [jobs added] per month is about what you need to keep unemployment stable," Mester said, citing stronger labor market numbers this year, with the three month average of about 192,000.

© 2018 Thomson/Reuters. All rights reserved.

   
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U.S. jobs growth last month was solid despite having slowed from previous months, Cleveland Fed President Loretta Mester said on Friday, adding she continues to believe it appropriate for the Federal Reserve to raise interest rates.
fed, mester, jobs, rate hike
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2016-39-07
Friday, 07 October 2016 09:39 AM
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