The November jobs report showed faster wage growth, better-than-expected job growth, and an economy weak enough to justify slowing future rate hikes by the Fed. It was a disappointment to the market.
“The problem is that hourly wage growth is on average twice what the market expects,” said Bryce Doty, senior vice president at Sit Investment Associates.
US jobs grow faster than expected, average hourly wages rise, pressure on Fed (2)
Here are some comments from other market participants:
◎ Dan Suzuki – Deputy Chief Investment Officer (CIO), Richard Bernstein Advisors
That seems like a bad statistic for the market. Although the employment numbers are strong and it is clear that increasing pressure on wages remains constant, the rest of the mix and key items are fairly weak. That suggests the Fed can’t slow down too much, but growth is still declining.
◎Victoria Green – Founding Partner and CIO of G Squared Private Wealth
The growth in employment this time was quite a shock. It’s somewhat surprising given the number of layoffs and hiring freezes that have been announced by tech companies. This, of course, means that the Fed can continue to focus entirely on inflation.
◎Mike Bailey – Director of Research, FBB Capital Partners
This is just bad timing and bad statistics. Fed Chairman Jerome Powell’s comments on November 30 had begun to give assurance that the path would be favorable for the markets towards the end of the year. But today’s strong employment numbers dampen those hopes. My feeling is that investors and the Fed will pay more attention to the next CPI data release just before the next US policy decision.
Original title:Wall Street Sees Jobs Beat as ‘Wrong Report at the Wrong Time’ (抜粋）