Kinahan: Yellen's Comments Not A Surprise, Will Add Focus To Jobs Number
Federal Reserve Chair Janet Yellen's Friday morning comments at Jackson Hole, in which she said the odds of a Federal Funds Rate hike have "strengthened," were typically vague. General consensus seems to be a December rate hike is still very much on the table, but according to TD Ameritrade Chief Market Strategist JJ Kinahan, the biggest takeaway is that people should be watching this week's Jobs number even more closely.
Kinahan told Benzinga in an email:
"I do not believe she told us anything we did not already know. She may have moved up the perceived time frame from a March of next year to a December of this year in terms of when a rate hike is coming, but other than laying out that the economy may be strengthening quicker than many had thought, it is not a major surprise. I think it only feels like such a major move today as it has been so long [33 days] without a 1% move in the SPX.
"This does make the September meeting interesting and the statement that will go along with it particularly compelling. But ahead of an election...I still do not see it happening. This also means that next Friday’s jobs report will have added focus from the market as all will be looking to it for some further indication of what is to come off that report."
The monthly jobs report for August will be released Friday, September 2, at 8:30 a.m. ET.
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