If December was a “live possibility” for a rate hike prior to the October jobs report, then today’s numbers may have just sealed the deal, after a staggering 271,000 jobs were added in the month and unemployment fell to 5%, the level that the Fed deems to be full employment. Ever since the October meeting, today’s jobs report was seen as one of two that could make or break the decision and based on the data, the decision suddenly looks pretty straight forward.
Fed Chair Janet Yellen piled onto the crude oil market after telling Congress that a December rate hike was a, "Live possibility!" Live--it’s a December rate hike! Maybe Yellen instead of Donald Trump should be on Saturday Night Live because she seems to get a major reaction to saying "live"!
China's central bank cut interest rates for the sixth time since November on Friday, and it again lowered the amount of cash that banks must hold as reserves in another attempt to jumpstart a slowing economy.
A U.S. interest rate hike is still probably coming in October or December despite some conflicting economic signals, a top Federal Reserve official said on Friday, reinforcing the central bank's message over the last few weeks.
Global investors pulled an estimated $40 billion from emerging market assets in the third quarter, according to data from the Institute of International Finance, making it the worst quarter since the end of 2008.
Not raising rates took many by surprise. After all, our economy is plugging along and rates have never been held this low for so long, etc., etc. I am sure there is some sound concern regarding what is going on in China and elsewhere, as there should be, as a justification for not raising them. But is there more here than meets the eye?
When the Federal Reserve didn’t raise interest rates on Thursday, investors should have thought of two people. First, they should have felt terrible for the maintenance man who—on one-by-one—has to yank down all of the green celebratory balloons from the CNBC studio rafters that were supposed to symbolically drop when the central bank would raise interest rates.