The Wall Street Journal’s Fed-whisperer Jon Hilsenrath has explained (briefly) how traders should think after the better-than-expected (but fewer in the workforce) jobs data…
The US jobless rate, which falls to 5.9% in September, was already where Fed officials projected last month it would be by year-end. Moreover payroll employment growth is robust, averaging more than 200k per month.
That means early interest rate increases next year — though not the Fed’s expected path before today — remain on the table.
In addition, officials will need to make a tough decision at their policy meeting later this month about whether to alter their guidance about the interest-rate outlook, or wait until they update their economic forecasts in December before changing the guidance.
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As Albert Edwards warned – it seems bad news is bad news again
via Zero Hedge http://ift.tt/1vEiiWT Tyler Durden