Bank of MontrealBMO
± MixedMonetaryrelevance
BMO's Anderson comments on the weak September jobs report supporting the Fed's cautious rate stance; no direct company-specific financial impact stated.
Impact on assets 1
Financials
Bank of MontrealThe US labor market showed even clearer signs of slowing in September. Job growth, the unemployment rate and average hourly earnings all came in below economists' forecasts, dispelling the view that the US labor market is overheating again and confirming that both labor demand and supply remain weak. BMO's Anderson said that given sluggish growth in labor supply, investors will need to get used to job growth near zero going forward, rather than the large payroll gains seen in the past. The September employment report supports the Federal Reserve's stance of proceeding cautiously with rate hikes. While economic growth and consumer spending remain resilient, both demand and supply in the labor market are at historically weak levels, sustaining an unstable equilibrium. Nothing in this report suggests the job market is in serious trouble, but the foundation supporting the labor market's resilience is likely not as solid as GDP growth.
Bank of MontrealBMO's Anderson comments on the weak September jobs report supporting the Fed's cautious rate stance; no direct company-specific financial impact stated.