Charlie Ripley at Allianz Investment Management said in a note that August
payrolls rose 162,000, a result that—despite monthly volatility—reinforces a
pattern of weak jobs growth and low labor mobility. Wage growth slowed to a
3.09% YoY low; adjusted for inflation, real wages have turned negative. Ripley
said consumers are feeling the squeeze and further Fed hikes risk
over-tightening. He added the August report materially changed market odds for a
September rate hike, but the outcome remains uncertain.
