Job growth was weaker than expected in September, but the unemployment rate fell below 5% for the first time since March 2020. U.S. nonfarm payrolls increased by 194,000 in September, versus the consensus forecast of 500,000.
Economic data remain somewhat mixed and we believe the ongoing health crisis and related supply chain bottlenecks continue to have a meaningful impact. Nevertheless, we believe the underlying momentum of the economy remains strong.
As expected, the Federal Open Market Committee (FOMC) kept monetary policy unchanged at its meeting this week but clearly signaled that they are preparing to reduce the magnitude of (i.e. taper) their asset purchases.
