Here it comes ” a short-term interest rate hike next month of 25 basis points for the first time since the first quarter of 2006. The prediction is based on today’s BLS report that payroll employment increased by 271,000 in October with the unemployment rate essentially unchanged at 5%.
The prime rate will likely move to 3.50% by year-end and likely to escalate to 5.00% in late 2016 according to forecaster RAM Research.
Total nonfarm payroll employment increased by 271,000 in October, and the unemployment rate was essentially unchanged at 5.0%, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, health care, retail trade, food services and drinking places, and construction.
Both the unemployment rate (5.0%) and the number of unemployed persons (7.9 million) were essentially unchanged in October. Over the past 12 months, the unemployment rate and the number of unemployed persons were down by 0.7
percentage point and 1.1 million, respectively.
Also the average hourly earnings rose 9 cents to $25.20 and are now up 2.5% over the past year, the biggest jump since 2009, after sluggish gains of about 2% for most of the recovery.
For data, background and forecasts on the Prime Rate: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).