Payrolls Report-what the Fed will pay attention
2022.12.02 05:07
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Payrolls Report-what the Fed will pay attention
Budrigannews.com – This is a large-scale event this afternoon. At 8:30 eastern time, 13:30 GMT receives information about the report on business activity in the United States in the November period, one of the thermometers of the US Central Bank took care of assessing the state of the country’s economic well-being.
In October, 200 thousand jobs are expected to be created, which is another 3-7 less than in October.
The Fed will closely monitor this data, especially since Federal Reserve Chairman Jerome Paul said last week that it could be cut. “It would be great news if the forecast was correct. “The Fed’s blue position will be strengthened by the loss of stability, but the data remains at a stable level,” said bankinter.
IG analyst Sergio Avila explains: “Investors are hoping that the report on wage growth in the United States shows that interest growth has the necessary effect on the economy, not to mention possible recessions.” “The trend of the end of the week of stock markets will depend on the employment indicators of the market. “
“The best results that analysts expected may lead to a sell-off of stocks and bonds, because it confirms that the US labor market continues to be very tense, which contributes to inflation and contributes to the fact that the Fed will act more decisively on monetary policy than many expected.”
Then they said: “On the contrary, we believe the worst that analysts predicted would give wings to the current cycle, which both bonds and stocks enjoy.”
“The employment report can show some kind of weakening of the labor market, while maintaining moderation with the next Fed rate hikes,” Renta 4 emphasizes.
“According to other data for the month of ADP, ULT.” According to George Curtis, manager of TwentyFor AM, “Powell, in his speech this week, pointed to the labor market as the most important factor in the future of inflation.”
She continued: “The number of open jobs is 4 million more than the number of unemployed people looking for work, but recently their number has begun to decline, as the number of part-time jobs has decreased by 1.5 million since the peak of March.”
The Fed and the market are closely following the report on the level of employment in the non-agricultural sector; Curtis concluded that “the consensus forecast for 200 thousand is still rising, but it is slowing down from the average level of 290 thousand over the past 3 months, which was a relatively average level of 450 thousand over the last seven months of the year. “
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