Hiring cooled for the second straight month but wages rose at their fastest rate in two years [WSJ]. The BLS indicated that weakened job gains were not generally attributable to areas impacted by the hurricanes. In fact, the job gains would have been even weaker if not for the resolution of a large strike at Boeing and hurricane-related construction. Rising wages are expected to keep pressure on the Fed to keep raising rates.
Increasing price pressures are creating a new “conundrum” for policy makers. According to a WSJ article by Mark Gongloff, we don’t seem to be in a “Goldilocks” economy anymore – not too cold, not too hot – that the markets prefer.
Either way, it doesn’t appear that mortgage rates will be falling in the near term as a result.