Dismal Jobs Report Could Delay Federal Reserve's Rate Hike Until 2017
The Federal Reserve may need to wait until 2017 to raise interest rates, according to chief economist at Stifel Fixed Income amid worries of continued softness in the labor market.
Forget 2015 and even 2016. The Federal Reserve may need to wait until 2017 to raise interest rates, according to Lindsey Piegza, chief economist at Stifel Fixed Income amid worries of continued softness in the labor market. Friday's disappointing jobs report shocked markets. The economy added only 142,000 jobs in September, well below the 200,000 or so jobs economists were expecting. The unemployment rate held steady at 5.1 percent. Meanwhile, average hourly earnings rose just 2.2 percent over the past year, while economists were looking for a 2.4 percent rise. Yields on the 10-year Treasury fell below 2 percent for the first time since August, following the disappointing report. TheStreet’s Scott Gamm spoke with Piegza.
