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September Jobs Report Largely Rules Out Fed Rate Hike in October, Says PenderFund CIO
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Greg Taylor, Chief Investment Officer at PenderFund Capital Management, commented on the September nonfarm payrolls report, stating that the data is very favorable for markets. According to Taylor, the report effectively eliminates the possibility of a Federal Reserve rate hike in October, a key concern that had been weighing on markets. He noted that while a rate hike at the December meeting remains possible, this expectation has already been fully priced in by the market and is unlikely to cause significant disruption. Taylor emphasized that the removal of the October rate hike risk is the most important takeaway and should be positive for market sentiment. The analysis was reported by TradeAlpha on October 2.
Source report
October 2 — Greg Taylor, Chief Investment Officer at PenderFund Capital Management, stated that the September nonfarm payroll report is actually very favorable for the market, as previous concerns had centered on the possibility that the Federal Reserve might be forced to raise interest rates again in October.
Based on the latest data, Taylor believes that possibility has now been completely ruled out. While a rate hike at the December meeting may still be on the table, that expectation has already been fully priced in by the market.
"I don't think this will have a major impact on the market," Taylor said. "Most importantly, the possibility of a Fed rate hike in October is now essentially off the table, which should be positive for the market."
Source
domesticWestern