• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Recent data has kept Fed rate view, soft landing, intact

by November 1, 2024
written by November 1, 2024

By Howard Schneider

WASHINGTON (Reuters) – A data-heavy week has kept the U.S. Federal Reserve’s core view intact of an economy where price pressures continue to ease and the job market continues to bend but not break amid ongoing economic growth.

Employment data for October was among the weakest of recent reports, with prior months revised lower and only 12,000 jobs added.

The numbers were likely distorted by strikes, bad weather, and a notably low response rate to Bureau of Labor Statistics surveys. But on its own the October report pulled the three-month average of job gains to a pandemic-era low that is near the pace Federal Reserve officials feel is needed to keep up with population growth.

Other details of the report seemed to confirm weaker hiring conditions, including a drop in the number of people finding a job who were either unemployed or not in the labor force in the prior month.

Still, the unemployment rate held steady at 4.1%, and average hourly earnings grew at a 4% annual rate, both signs of what Fed officials hope is a job market that has gotten back to a normal sort of equilibrium that can be sustained.

“In spite of the weak headline number, today’s report shouldn’t raise alarm bells for job seekers, workers, or policymakers yet…For now, a soft landing is still on the table,” wrote Cory Stahle, an economist with the Indeed Hiring Lab, in an analysis of the October employment numbers.

The Fed meets on Nov. 6-7, a session delayed a day for Tuesday’s presidential election. U.S. central bankers are expected to reduce the benchmark policy rate by a quarter of a percentage point to a range of from 4.5% to 4.75%.

Other data since the Fed’s September meeting has largely been in line with what policymakers said they were expecting.

Inflation data issued on Thursday showed the Personal Consumption Expenditures price index rose at a 2.1% annual rate in September, near the 2% target set by the Fed for that index.

A related measure excluding volatile food and energy prices and considered a better gauge of underlying inflation has been stuck for three months at a higher 2.7% level.

But even with quarter-point rate reductions expected in November and at the Fed’s December meeting, monetary policy will still be considered tight at a time when many Fed officials feel their inflation battle is close to complete and economic risks shifting towards the job market.

Growth, meanwhile, remains strong and consumers continue to spend.

September retail sales were stronger than expected.

An initial report on third-quarter gross domestic product estimated the economy expanded at a 2.8% annualized rate, above the level Fed officials consider the long-term sustainable trend.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Super Micro’s $50 billion stock collapse underscores risk of AI hype
next post
Argentina cuts interest rate to 35% as inflation outlook eases

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Hedge funds turn attentions to bank, bond and oil trades under Trump
    • Airlines cancel flights, airports close as Hurricane Milton nears Florida

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy