Fed’s Kugler gives guidance on Non Farm Payrolls numbers to watch

Federal Reserve Board Governor Adriana Kugler is speaking still.

Earlier here:

• Fed’s Kugler says she strongly supported 50 bps rate cut

And:

• More from Fed’s Kugler – We do not want the labour market to weaken further

In that ‘More from’ post are few buried comments on job numbers that’ll get the Federal Open Market Committee (FOMC) sweating. Going to highlight them here, print ’em out and stick ’em on the fridge for the next few jobs reports:

• Below 100K monthly job gain would be ‘very low’, must be mindful of potential downward revisions.
• Breakeven number for monthly job gains is anywhere from 100K to 240K.

There you have it folks. As good a guide to any on what to watch for ongoing 50bp rate cuts.

***

And, more again from Kugler:

• We have a resilient labor market, we don’t want demand to fall further when it’s not necessary.
• Makes sense to cut rates to remove some restrictiveness.
• We are way above any estimates of neutral.
• Fed funds rate determines policy; balance sheet shrinking is not a key part of achieving mandates.
• We are not celebrating, we are not there yet, on 2% inflation goal.

This article was written by Eamonn Sheridan at www.forexlive.com.