“We believe that today’s firm jobs report seals the deal for a rate increase in December,” Fannie Mae Chief Economist Doug Duncan said last Friday, reports HousingWire staffer Ben Lane.
A few days prior to the jobs report, the Federal Open Market Committee said it planned to leave the federal funds rate unchanged, but framed its announcement in a way that led many to believe a rate hike would come next month.
The country’s total non-farm payroll employment grew by 161,000 in October, according to the latest U.S. Bureau of Labor Statistics report. “The ammunition for a rate hike includes a solid job gain in October, meaningful upward revisions for the prior two months, and the biggest annual wage gain since June 2009,” Duncan said. “The decline in the labor force participation rate is arguably a slight blemish.”