FXStreet (Mumbai) – Wall Street Journal’s (WSJ) fed watcher Jon Hilsenrath, in his latest analysis, says the jobs report released today keeps Fed on track for a rate hike in 2015.
In his analysis, Hilsenrath says, “The Labor Department‘s June employment report, released Friday, broadly confirmed the Federal Reserve‘s narrative about how the U.S. economic expansion is unfolding in 2015, keeping the central bank on track to raise short-term interest rates later this year, barring some new setback.”
Though the economy regained footing in the second quarter, Hilsenrath says, “Still, there were enough soft undercurrents in the report to keep Fed officials comfortable that they don’t need to hurry to raise rates and that once they start they can proceed gradually.”
Hislenrath lists tepid wage growth and overseas financial turbulence as major threats and ends his analysis by stating that, “Fed officials will want to take the time between now and their September policy meeting to see whether these threats will pass.”
(Market News Provided by FXstreet)