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Sep 14

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Interest Rates on the Rise?

TrendsLast week’s labor report was good news for American workers with reports that 200,000 more jobs were added to the economy in August – but could this be the start of a continued rise in the interest rates?

August’s surprise jump in wages could be a sign of more wage growth ahead – good news for workers and a green light for the Fed when it comes to interest rates hikes.

CNBC, Patti Domm, 9/7/18, Strong jobs report gives Fed the green light for more rate increases

Hourly wages increased by .4% which is double what was projected. The Fed is expect to raise rates a the end of this month (September) but there’s been a lot of speculation over whether this will continue in December.

Ian Lyngen, head of US rate strategy at BMO noted that fed funds futures reported odds of a December rate hike are at 58%, up from 52% before the jobs report.

There is no longer a mystery about why companies are not rewarding their employees after one of the biggest tax cuts in history, said Chris Rupkey, chief financial economist at MUFG Union Bank.

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