Fed insists Rate Hike Still On the Table Despite Recent Poor Jobs and Economic ReportsBGASC Metals / Townhall Columnist
Last Friday, the widely anticipated Non Farm Payroll number was released and it was a big miss, just 150,000 new jobs were created in August vs. expectations ranging from 180-200K. Market participants took this poor job reading as a sign that a rate hike in September was off the table.
Then, as if on cue Fed Presidents Williams, earlier this week and Rosengren today expressed their support for interest rate hikes. San Francisco Fed President John Williams insisted the “economy was strong” and rate hikes were warranted. Boston Fed President Eric Rosengren warned that the economy risked overheating if rates were not raised. These statements about the health of the economy contradict not only the sub par August non farm payroll reading but also declines in the ISM manufacturing and services reports. The ISM services report reflected a declining barely expanding sector and the manufacturing report indicated a contraction.