Increasing Interest

Employers added 263,000 jobs in September, an unsustainably fast pace. The unemployment rate fell from 3.7% to 3.5%, matching a 50-year low, partly because 57,000 persons dropped out of the labor force, reducing the labor force participation rate from 62.4% to 62.3%. This is a very tight labor market, and the Fed is zero percent of the way towards its inflation goal. A November 75bps fed funds hike is assured.