Employment Report Disappoints but Probably Won’t Delay Federal Reserve’s Tapering Plan

The September employment report disappointed analysts; will it also complicate the Federal Reserve’s plan to begin withdrawing the monetary support that has cushioned the economy throughout the pandemic?

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To a summer that has been sizzling in many parts of the country, the Department of Labor’s July employment report delivered some additional heat.

Since the Federal Reserve boosted interest rates in March, additional rate moves this year have been pretty much a foregone conclusion. That the Federal Open Market Committee (FOMC), the Fed’s policy-making arm, will increase rates at its mid-June meeting remains the consensus view, but the conclusion is somewhat less foregone than it has been.

Predictions that the Fed would increase interest rates at its June meeting were virtually unanimous, and the Federal Open Market Committee, the Fed’s policy-making arm, didn’t surprise or disappoint. 

The Federal Reserve left interest rates unchanged at is April meeting, but remains on course to boost rates at least twice before the end of this year.