Federal Reserve Board of Governors member Christopher Waller predicted on Monday that the nonfarm payroll data for October will "most likely" report a "significant yet temporary" loss of jobs as a consequence of hurricanes and Boeing worker strike.
"I expect these factors may reduce employment growth by more than 100,000 this month, and there may be a small effect on the unemployment rate, but I'm not sure it will be that visible," Waller noted. At the same time, he estimated that the payrolls will continue to post gains, albeit at a more moderate pace whereas unemployment could see a slight increase but remain low in "historical terms."
Speaking about the rate policy for the coming year, Waller said he sees a gradual reduction, adding that FOMC members mostly agree on the median rate of 3.4% at the end of that year while adding "there is less certainty about the final destination."
