FAST FIVE: Fed Mouthpiece: "On Track For Another Large Rate Increase After Solid Jobs Report"

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Fed Mouthpiece: “On Track For Another Large Rate Increase After Solid jobs Report” It's not like stocks needed any additional signals to sell off this morning – they are already down more than 2% as we type without a single positive TICK reading 45 minutes into trading – but they got one just in case moments ago, when the Fed's new favorite mouthpiece, WSJ scribe Nick Timiraos wrote that “the September solid employment report is keeping the Federal Reserve on track to approve another large interest-rate increase at its meeting next month as officials seek to lift borrowing costs high enough to soften the labor market and ease inflation pressures.” [Fed officials] are concerned now that tight US labor markets could sustain higher prices in the years to come, even if energy prices decline and prices fall for goods such as used cars that soared over the past year.

This is hardly a surprise to the market which has already pushed November rate hike odds to almost a certain (95%) 75bps from 64% odds after the JOLTS job openings shock.

As for stocks, well – easy come, easy go.

Categories: ZH