Sep 14

Print this Post

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.

Permanent link to this article: http://atxre.com/interest-rates-on-the-rise/

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.