It’s been a week since Janet Yellen’s talk at Jackson Hole. Learn more about the aftermath and what’s to come in this week’s edition of Fed Up Friday.
New Job Numbers Bad News for Possible September Rate Hike
Employment numbers for August came in this morning, and, at just 151,000 newly added workers, they’re lower than many were hoping. The official unemployment rate remained at 4.9 percent. Average hourly earnings grew only 0.1 percent, bringing the 12-month increase in wages to 2.4 percent. The wage increase is said to be ahead of inflation, but that’s only if you consider the fuzzy consumer price index numbers the Fed uses to make their data dependent decisions. Gold prices jumped around $10 per oz at the news.
Recent Hawkish Fed Comments Aren’t Convincing Skeptical Investors
Evasive language and ambiguous proclamations from the Fed are starting to irritate many traders. Janet Yellen’s speech last week was more of the same as the chairwoman, yet again, speculated on the possibility of a September rate hike. The market’s initial reaction suggested investors saw a hawkish future, but the feelings didn’t last.
This post was published at Schiffgold on SEPTEMBER 2, 2016.