Jobs Slow as Inflation Keeps Fed on Alert

• Softer September jobs data eases pressure for an October Fed rate hike, but inflation remains a concern.
• Ira Jersey expects the Fed to hike rates in December and once in Q1 next year due to persistent inflation.
• Strong nominal GDP (5.5-6.5%) and loose fiscal policy globally are driving higher long-term bond yields, forcing central banks to tighten.

Ira Jersey, Bloomberg Intelligence's Chief US Interest Rate Strategist, discusses the Federal Reserve's monetary policy, noting that while softer September jobs data might delay an October rate hike, persistent inflation and loose fiscal policy will likely lead to further rate increases in December and early next year. He emphasizes that strong nominal GDP is a primary driver of higher global bond yields, putting pressure on central banks to tighten monetary policy, even if it risks a recession.