Good Job News, at least
Just a day after Fed Chairman Alan Greenspan expressed hope the labor market would start to improve, the October payrolls report showed a 126,000 gain, more than double analysts’ forecasts. Dramatic revisions to previous data showed three consecutive months of gains.
Jobs growth had been the missing element in an otherwise robust recovery but economists are gaining conviction that all the pieces of the puzzle are now falling into place.
Some now wonder how much longer the Fed will consider its benchmark rate, at a 45-year low of 1.0 percent, appropriate, even with low inflation.
Barring actual, not potential, inflation, my guess is that the Fed isn’t too likely to raise rates in the next, say, 11.5 months.