(Bloomberg) - Here are what analysts are saying about the jobs report:
Bruce Richards, chairman and CEO of Marathon Asset Management, a $24 billion global credit manager, says this jobs report is already priced in: “August employment shows continued strength in the labor market, full employment, gains across the board, strong wage growth, a shortage of labor, but is directly in line and priced to expectations. The report does not change Powell’s policy as it has much work to do if it intends to weaken demand, which the Fed knows is must do to arrest inflation.”
Julia Coronado, founder and president of MacroPolicy Perspectives, says: “This is a Goldilocks report for the Fed -- not too hot, not too cold. Allows them to keep going ‘purposefully,’ so we are sticking with a 50bp hike... The improvement in LFP is particularly welcome. Better to have improved supply than reduced demand all else equal.”
Florian Ielpo, head of macro research at Lombard Odier Asset Management, says “the economy is still doing reasonably well, at least well enough to still be producing inflation. Today’s payroll numbers and the ISM figures are both pointing in this direction and give more ground to the Fed for 75 bps hike.”
Charlie McElligott, Nomura Securities Managing Director for macro cross-asset strategy, says the jobs numbers are unlikely to change the Fed’s path: “The fact that despite on in line or modest ‘beat’ on NFP, that we saw wages a touch lower and U-Rate move higher help offset to ‘better jobs = stocks sell off’ consensus expectation into the number.
Jeffrey Rosenberg, a senior portfolio manager at BlackRock Inc., says the report “isn’t going to significantly affect the trajectory of the Fed.” He adds that today’s report really doesn’t settle the question of where the Fed’s policy rate ends up.
For more on US Employment Report for August, click here for our TOPLive blog.
By Bloomberg News
