Goldman Sachs - NFP huge miss reduces the chance of a 2021 Federal Reserve taper

Author: Eamonn Sheridan | Category: Central Banks

The US nonfarm payroll report on Friday was a monumental miss on estimates.

Consensus was for around an addition of a million jobs.

You'll recall that GS was above consensus, circa +1.3million if memory serves. 

The headline number was much, much lower: The market impact:Goldman Sachs explained the miss by blaming laziness. Which seems rather bizarre given all the indications leading up to the NFP, and upon which the estimates for the headline were based did not indicate this at all. 

More from GS now, this time on what it means for the Fed:
  • job gains and declines in the unemployment rate are likely to be less front-loaded than we had previously thought
  • reduce the odds of the taper getting underway by 2021Q4
  • We continue to expect the FOMC to start tapering early next year
Maybe this leads to a chilling of the expectations for Powell to signal a taper at Jackson Hole. We'll have to find something else to worry about for the next tree and half months :-D 

Keep an eye on the dots I guess ....
The US nonfarm payroll report on Friday was a monumental miss on estimates.


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