Analyst: Fed has room to wait for more data, market reaction to non-farm payrolls report varies

Seema Shah, an analyst at Principal Asset Management, commented on U.S. non-farm payrolls in September: Market reactions to the non-farm payrolls report were mixed. The stock market welcomed the higher-than-expected payrolls, indicating that the economy remains solid; while the bond market is more focused on rising unemployment and slower wage growth, which may leave open the possibility that the Federal Reserve will cut interest rates in December. Today's jobs data is unlikely to tilt the Fed towards a December rate cut. Even so, sitting still in December is not a serious mistake. While weak consumer confidence highlights concerns about job security, labor market conditions, while soft, are by no means recessionary, providing the Fed with breathing room to act decisively once it has enough convincing data. ( Gold Ten)