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Jobs Report Preview: Mediocre Jobs News Could Calm Markets

Wednesday, July 3, 2013 - 3:58 PM
From CNNMoney
Analysts are expecting yet another mediocre jobs report this month, which could be just the thing to soothe volatile stock prices and interest rate swings of the last few weeks.

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It may soothe stock prices, but another mediocre jobs report will push out when the Fed will start hiking rates. Here's a useful overview from the CR blog on how jobs report will need to improve for the Fed to start hiking rates:
Another frequent question is when will the unemployment rate fall to 6.5% (the Fed's threshold, but not trigger, for raising the Fed's funds rate). If the participation rate stays steady, the unemployment rate will fall to 6.5% in December 2014 if the economy adds around 185,000 jobs per month.   This is consistent with the Fed not raising rates until 2015 or later.

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5
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,688
1. Wednesday, July 3, 2013 - 8:21 PM
Even if unemployment drops below 6.5% I fully expect the Fed not to raise interest rates. Some other excuse 'not to' will appear magically into the picture.
6
ShorebreakShorebreak2,368 posts since
Apr 6, 2010
Rep Points: 12,624
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