US: October employment report maintains December Fed hike expectations - BBH

According to analysts from Brown Brother Harriman, the numbers from the NFP report suggests that a Federal Reserve rate hike in December in still the most likely scenario. 

Key Quotes: 

“The US October jobs report as a whole was in line with expectations, and suggests a Fed hike next month is still the most likely scenario. “

“Hourly earnings rose 0.4% to 2.8% year-over-year.  The September series was revised higher to 2.7%.  Hourly earnings are rising at their fastest pace since 2009.  It will strengthen ideas that the labor market is getting tighter and pushing up wages.  Higher wages are understood to drive core inflation.  Core inflation is what the Fed targets.”  

“The market has taken the data in stride.  The US dollar continues to consolidate this week's losses.  US yields are little changed.   The December Fed funds are in the middle of its narrow three week range.”