The September employment report will be released this Friday and expectations are for the jobs report to show strength for the month. Coming off a lackluster August report, an uptick in new jobs is expected despite the ongoing pandemic. The expectation is for approximately 470,000 new jobs and a drop in the unemployment rate to 5.1%.
With all of the back and forth in Washington surrounding infrastructure and reconciliation legislation, a key piece of economic data that didn’t get much attention last week was the uptick in the Personal Consumption Expenditures (PCE) price gauge, which rose to 4.3% year-over-year. This indicator, which is preferred by the Federal Reserve (Fed) for measuring inflation, stood at its highest level since 1991.
The next few weeks could bring an increase in the volatility seen in markets over the past few weeks. The debt ceiling, which needs to be resolved by mid-October, and the reboot of the administration’s economic priorities, which has been pushed off for passage until late October, both have the potential to create uncertainty and volatility.
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