Analyst Jersey said today's nonfarm payrolls make a Fed rate hike harder to
implement. While markets still price the Fed's next move as a hike, the report
highlights that a rate increase could threaten the employment side of the Fed's
dual mandate. Although Walsh sought to downplay the employment mandate, Jersey
expects an FOMC majority will worry a hike could hurt jobs; absent inflation
sustainably above 3% and expected to remain there, they will hold the policy
rate unchanged until a clear trend shift.
