Stronger-than-Expected Rise in September Payrolls Muddies Outlook for November Policy Action
Economic Insight
A significantly stronger than expected 254k gain in September nonfarm payrolls not only calls into question the Fed's latest outsized rate cut decision in?September, but also the size of additional rate cuts needed going forward. Buoyed by fears of mounting weakness in the labor market, the Committee opted for a "strong start"?out of the gate, however, with the latest – clear – evidence of ongoing strength in labor market conditions juxtaposed with still elevated, and by some metrics, accelerating price pressures, the Fed’s efforts may be more appropriately focused on reinstating price stability.
This week, we take a closer look at the latest September payrolls report and what it means for future Fed policy.