+34
Chris Phelan, chair of the President's Council of Economic Advisers, doesn't expect the Federal Reserve to raise interest rates again following Friday's employment report and this week's cooler inflation data.
Chris Phelan, chair of the President's Council of Economic Advisers, doesn't expect the Federal Reserve to raise interest rates again following Friday's employment report and this week's cooler inflation data.
"I think with today's job market data, and a speech by the vice chairman, I think the market is now no longer expecting another rate hike," Phelan told Yahoo Finance in an interview Friday. The economy added 29,000 jobs in September, falling short of expectations of 88,000, and down from a revised 133,000 for August. Monthly job growth has averaged 65,000 so far this year.
According to Phelan's calculations, the economy needs to add only about 40,000 jobs per month to keep the unemployment rate at its current level.
"I said right before they raised rates that it would be a mistake to raise rates. I said right after they raised rates that it was a mistake to raise rates," Phelan said.
"My view was simply keep your eye on the ball — which Chairman Warsh in his Jackson Hole speech said, 'What is the ball? ' The ball is inflation. ", down from 3.7% from the previous two months. Excluding volatile energy and food prices,"core" PCE rose 3%, marking a drop from 3.3% in July.make a case for additional tightening , Fed Vice Chair Philip Jefferson and New York Fed president John Williams struck a more dovish note.
Both noted that inflation remains too high but that the central bank should take time to monitor and assess whether inflation will decline in a timely manner. Williams said that, after raising rates in September, he sees"no need for urgency" and that"we have time to gather more information.
" Another metric closely watched by both the White House and Fed officials: the unemployment rate. Friday's jobs report showed the unemployment rate edged up to 4.2% in September from 4.1% a month earlier. Phelan contends that a rate between those two figures would constitute a"good" job market. Jennifer Schonberger is a veteran financial journalist covering markets, the economy, and investing.
At Yahoo Finance, she covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington policy with finance. Follow her on X
Business Financial Information Investing Investor Market News Stock Research Stock Valuation Business News Economy Finance Investment Tools Mortgage Mutual Funds Personal Finance Quote Real Estate Retirement Stock Stocks Suze Orman Tax Track Portfolio
Canada Latest News, Canada Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Wall Street Nears Winning September as Inflation Cools and Treasury Yields EaseU.S. inflation came in softer than expected in August, easing pressure on Treasury yields and helping stocks hold a small gain for September as investors cut bets on another Federal Reserve rate hike.
Read more »
Texas AD Chris Del Conte apologizes for inappropriate player celebrations, says they 'cannot happen again'Chris Del Conte wasn't pleased the celebrations took away from an otherwise great win by Texas.
Read more »
Karoline Leavitt Accidentally Broadcasts Instagram Live With Her DaughterWhite House Press Secretary Karoline Leavitt accidentally started an Instagram Live while lying in bed with her five-month-old daughter, briefly attracting 1,157 viewers. The incident came shortly after the White House launched a 24-hour streaming channel, amid controversy over restrictions affecting media access.
Read more »
Chinese hackers impersonated ex-White House official Lynne Parker to target AI expertsProofpoint says Chinese hackers posed as former White House official Lynne Parker to steal passwords from AI policy experts, including former officials at think tanks and universities.
Read more »