The ADP Jobs Report Was Quite Good

The market is focused on Friday’s jobs report. If you recall, the one for October was quite strong. We got a preview today when ADP, the private payroll firm, said that 217,000 new private sector jobs were created last month. That’s a good number. Wall Street expects 190,000 for the government’s report due this Friday.

Also today, Janet Yellen gave a somewhat optimistic outlook for the economy:

Ms. Yellen described an economic backdrop that fit that description, a strong hint that she is leaning toward moving rates higher soon. She also warned Wednesday that delaying a rate increase could hurt the economy, for instance by inducing risk-taking among investors that could destabilize the financial system.

“On balance, economic and financial information received since our October meeting has been consistent with our expectations of continued improvement in the labor market,” Ms. Yellen said in her speech. “Continuing improvement in the labor market helps strengthen confidence that inflation will move back to our 2 percent objective over the medium term.”

On Monday when I was on Bloomberg, I was very confident that the Fed will raise rates this month. I’m sticking by that. The futures are at 75% which seems too low.

Posted by on December 2nd, 2015 at 3:53 pm


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