Why today's job numbers aren't a reprieve from a rate hike

The Federal Reserve will raise the overnight cost of money on Wednesday
  • The Wednesday Fed rate-hike move is already built in to rates.
  • The Fed is hiking because the economic recovery is doing better and better with exceedingly low inflation.
  • The Trump administration’s tentative nominees for Fed Governor are purely mainstream.

Long-term interest rates have held a crucial edge today despite another outsize gain in payrolls. Job gains show increasing health, but low and stable wage increases have given us a stay of execution. Not a reprieve. It’s just matter of days or weeks until long rates break upward.