Former Cleveland Fed President Mester reacts to September jobs report

• September jobs report showed lower-than-expected nonfarm payrolls (+29K vs +84K est.) and average hourly wage growth (+0.1% M/M vs +0.3% est.).
• The unemployment rate ticked higher to 4.2% (vs 4.1% est.), indicating a cooling labor market.
• Mester believes the Fed will likely hold rates in October to accumulate more data, with Fed futures showing a 76% probability for a December hike, and only 19% for October.
• She emphasizes that inflation remains the main problem, but the current labor market data doesn't suggest it's primarily driving inflation up.

Former Cleveland Fed President Loretta Mester discusses the September jobs report, noting it reflects a steady labor market not driving inflation. She suggests the Fed will likely hold rates in October to gather more data, despite a potential economic case for a hike. This outlook is generally seen as friendly for markets.