Bloomberg's Anna Wong Warns Weak Nonfarm Payrolls Could Hit Fed Policy Path

Bloomberg chief economist Anna Wong said next week's U.S. nonfarm payroll report could come in weak, and there is a real probability it will print negative job growth. Such an outcome, she said, would carry significant consequences for the Federal Reserve's policy path. Wong noted that if the data shows two consecutive negative nonfarm payroll readings, modern Fed history contains no precedent for the central bank raising interest rates in that situation. Her warning, reported via ChainCatcher, centers on a report that she said would be critical for the Fed's next policy moves. A negative print would mark a sharp deterioration in the labor market, and two straight negative numbers would put the Fed in uncharted territory on rate policy. Wong's assessment stops short of recommending a specific response, instead highlighting the unusual constraints facing policymakers. With the report scheduled for release next week, the data will be central to how the Fed's policy path evolves, according to her analysis.