The Fed should be cautious about over-tightening and causing too much of a downturn in the housing market.
We've seen some gyrations in expectations due to the whipsaw that we've seen in the economic data. We're looking for two more increases. At that point, the Fed must be a little bit cautious and take into account the lagged effect of previous rate hikes.
The Fed is still on the tightening path. When you get to the bottom line, it's just more solid employment growth.
The Fed sees the possibility of labor markets becoming tight, which could push up costs at some point. At this point we haven't seen wage pressures but it's something the Fed is watching.
We're still returning to pre-hurricane levels but in general this is a good report. This is further evidence labor markets are still healthy in the U.S.
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