Cardillo Sees Fed Holding Rates in October After Below-Forecast Data

Peter Cardillo, chief market economist at Spartan Capital Securities, sees the Federal Reserve holding interest rates steady at its October meeting after job gains and the PCE price index came in below expectations.

Nonfarm job gains missed forecasts, but the labor market continued to grow. Wages showed no inflationary pressure, while an increase in labor-force participation may have contributed to the higher unemployment rate.

Cardillo characterized the jobs report as favorable for markets, saying it may ease upward pressure on yields and limit concerns about wage inflation. The below-forecast PCE price index, released in recent days, also supports his view that the Fed will hold rates steady in October.