So, Don't Expect The Fed To Rush Rate Hikes

Janet yellenREUTERS/Larry DowningFederal Reserve Chair Janet Yellen

The economy added to its jobs streak today.

Nonfarm payrolls were up 214,000 in October, according to the Bureau of Labour Statistics. The unemployment rate dropped to 5.8%, the lowest it has been since the summer of 2008.

While the headline numbers are good, wage growth is still stagnant, rising only 2% year-over-year. As a result, Wall Street thinks this means the Fed won’t feel too much pressure to raise interest rates sooner than anticipated.

From a note to BNP clients: “Today’s employment report is likely to keep the FOMC on track to hike rates around Q2 2015 — with risks for earlier or later roughly balanced.”

Captial Economics’ Paul Ashworth shared the same sentiment: “Admittedly, the Fed doves could still cling to the news that, despite the decline in the unemployment rate, there is still no sign of a pick -up in average hourly earnings, which increased by a muted 0.1% m/m last month.”

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.