The U.S. economy added 165,000 jobs in October, nearly triple the Dow Jones consensus estimate, while unemployment dipped slightly to 4.1%. However, average hourly earnings grew by only 3.1% annually, falling behind the 3.7% consumer price index inflation rate recorded in September. In response, central bank officials like Mary Daly and Thomas Barkin are advocating for potential future borrowing cost increases to restore balance. Daly favors a gradual approach as she prepares to step into a voting role on the rate-setting committee next year.
Key points
Federal Reserve officials are prepared to approve additional interest rate increases to c…: Federal Reserve officials are prepared to approve additional interest rate increases to counter persistent inflation.
Real wages continue to erode for American workers because pay gains are failing to keep p…: Real wages continue to erode for American workers because pay gains are failing to keep pace with living expenses.
Policymakers support taking a gradual approach to future monetary policy adjustments whil…: Policymakers support taking a gradual approach to future monetary policy adjustments while waiting for more economic data.
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San Francisco Federal Reserve President Mary Daly said Friday she expects the central bank will need to raise interest rates further, but joined her fellow policymakers in saying the pace and timing remain uncertain.
"My expectation is we're going to have to tighten policy further. Exactly when and how much is still to be decided because we just have to take all the variables that are coming in," Daly told CNBC's Steve Liesman during a live interview. "More is likely to be needed, and certainly ... I'm prepared to do that if that's what the economy calls for."
The remarks came the same day the Bureau of Labor Statistics reported that the U.S. economy added 165,000 jobs in October while the unemployment rate — the labor-market variable Fed officials focus on most — edged lower to 4.1%.
Those numbers were substantially better than Wall Street expectations. Job creation, in fact, was nearly triple the Dow Jones consensus estimate.
Daly called the report "good news for American workers," but noted the pressure inflation is exerting on household finances. Average hourly earnings…
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