(Bloomberg) -- San Francisco Fed President Mary Daly said the US jobs market still looked healthy after fresh employment data was released Friday.
“The labor market remains in a good position,” Daly said at Stanford University’s Hoover Institution. “As jobs are expanding, there’s about one vacancy for every unemployed worker. So that’s a balanced labor market.”
Her remarks followed new data that showed hiring rebounded in November following an October disrupted by storms and strikes. Employers added 227,000 jobs, and wages exceeded expectations.
Yet, those strong figures came alongside an uptick in unemployment. That likely leaves policymakers keen to see inflation data due next week before they gather in Washington Dec. 17-18. Following the report, investors put higher odds on a December rate cut.
Officials will get fresh data on consumer and producer prices, as well as retail sales, before they conclude their next meeting on Dec. 18.
Fed officials have cut interest rates by three quarters of a percentage point, starting with a larger-than-usual half-point reduction in September. While they are expected to deliver a further quarter-point cut when they meet later this month, markets still see a chance that they could hold rates where they are, in a range of 4.5% to 4.75%.
Responding to audience questions, Daly wouldn’t say whether she would support a rate cut in December.
The San Francisco Fed chief also said she expects the Fed to wait and judge the net impact of multiple policies introduced by the incoming administration before it alters monetary policy.
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