- Analytics
- News and Tools
- Market News
- Strong job growth = 75 bps rate hike? – Commerzbank
Strong job growth = 75 bps rate hike? – Commerzbank
Economists at Commerzbank provide their afterthoughts on the stellar US monthly jobs report, which showed that the economy added a whopping 528K jobs in July and the unemployment rate fell to 3.5%. The upbeat employment details now seem to have revived hopes for a larger Fed rate hike move at the September policy meeting.
Key Quotes:
“With the U.S. economy having contracted in the first two quarters of 2022, the definition of a "technical recession" popular in financial markets is fulfilled. However, the labor market, which has been very robust so far, should in the end determine whether the economy is headed for a real recession with rising unemployment and falling consumer spending.”
“At the press conference after the July meeting, Fed Chairman Powell explicitly referred to the two employment reports due before the September meeting. These would help determine whether the Fed would have to continue to apply the brakes forcefully. The first of these two data points has now been published – and shows that the labor market continues to run hot. The cooling hoped for by the Fed to lower inflationary pressure has failed to materialize. As a result, calls for another 75 basis points rate hike are likely to grow louder in the FOMC.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
