Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

No More Excuses for the Fed

September 4, 2015 By Jeremy Jones, CFA

The jobs report was released this morning and number of new jobs created in August came in at 173,000, missing estimates by about 44,000 jobs or 0.02% of the total U.S. labor force, but last month’s number was revised up by 30,000 jobs.

The unemployment rate fell to 5.1%, which is dead smack in the middle of the Fed’s full employment estimates that were released only two months ago. Wage growth also improved in August, rising 0.3% for the month compared to a 0.2% gain during the prior month. On balance the jobs report had more positives than negatives.

unemployment

There is now nothing in the labor market that should prevent the Fed from raising rates at its September meeting, unless of course, they decide to move the goal posts on us again.

In terms of measured inflation, the Fed may be able to get away with further delay of a rate hike as plunging oil prices and a strengthening dollar have temporarily pushed the headline unemployment number under 1%. But low inflation readings won’t be sustained for long. If you look through the headline number to more stable sources of inflation such as services inflation or the Cleveland Fed’s trimmed mean CPI, measured inflation is steady as she goes.

So then, the jobs market looks good and inflation is steady. According to the congressional mandate that the Fed had hid behind for years now, there is no reason to delay.

Financial market volatility is the only wild card now. Volatility as picked up just as the Fed signaled a willingness to hike rates. Will Yellen change the course from Bernanke who was as slave to the markets or will she follow her predecessor and obey Wall Street’s every command? The odds say Yellen & Co., back down on a rate hike. September 17, is D-day. Stay tuned.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • This is What Terrorizes the Fed
  • A Failed Fed Tightening
  • Is the Fed the Biggest Risk to the Economy?
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • PARTY’S OVER: Covid Booze Binge Coming to an End? - July 7, 2022
  • Avoid This Serious Tax Mistake in Retirement - July 6, 2022
  • Could Car Dealers Get Flooded with Cars Mid-Recession? - July 5, 2022

Search Young Research

Most Popular

  • Even Without Food and Gas, Inflation is Soaring
  • Avoid This Serious Tax Mistake in Retirement
  • Could Car Dealers Get Flooded with Cars Mid-Recession?
  • Red States Churning Out Jobs While Blue States Lag Behind
  • Time to Save, Troubles Dining Out, and Intelligence on Yellowstone
  • Here’s Why You Need a 15-Year Retirement Investment Plan
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Despite Inflation, Best Year Ever for Vacation Demand
  • The Power of a Compound Interest Table
  • “Talk to Me, Goose!” Time Flies in Top Gun: Maverick

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Dollar Strengthens as “Least Bad” Currency Today
  • Biden’s Economic Illiteracy and Shameless Demagoguery
  • “Shooter! Run!”
  • FOOD SHORTAGE: Drought in Italy Leaves Farmers High and Dry
  • BANKRUPTCY: Airline Restructures as Exhausted Pilots Demand Relief
  • BIDEN OUT OF TOUCH: Will America See Recession, or Worse?
  • Your Average Joe – a Man Out of Touch
  • “Talk to Me, Goose!” Time Flies in Top Gun: Maverick
  • The Dangers of Politicizing the Federal Reserve
  • FOOD SHORTAGE: Four Reasons Farms Are Suffering

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.