U.S. Jobs Data To Hint Exclusively On September Rate Hike
The U.S. payrolls for August reaffirmed the case for September rate hike from Fed. According to a Bloomberg survey, employers hired 198,000 workers, up from July’s 157,000 and unemployment rate now dropped to 3.8%, marking a 49-year minimum. Average hourly earnings are projected to increase 2.7% comparing to 2017.
Michael Gapen, chief U.S. economist at Barclays Plc in New York and a former Fed economist said: “The labor market is in a good place,” and a solid pick up in jobs would be “Goldilocks enough” to help seal a September interest-rate hike.
Still, investors have some concerns about the Fed outlook due to trade tension with China, emerging markets turmoil and possible yield-curve inversion (rise in short-term Treasury yields over the long-term rates).