Strategist says September payroll data supports a Fed pause in October

Annex Wealth Management Chief Economist and Strategist Brian Jacobsen said the U.S. labor market looks weaker than initially believed, pointing to revised and slowing employment data. He noted that July payroll figures were revised down to negative growth, while August posted a solid rebound that lost momentum in September, when only 29,000 jobs were added. Jacobsen also said the employment diffusion index fell back below 50, a sign that job gains were losing breadth. He added that while Federal Reserve Chair Waller had previously been concerned about the breadth of inflation, the focus may now have to shift to the lack of breadth in the labor market. Based on that set of data, Jacobsen said the September nonfarm payroll report supports the case for the Federal Reserve to hold rates steady in October. The remarks were cited by BlockBeats, referencing Jin10.