Jobs report reaction: ‘It is increasingly hard to imagine the Fed hiking interest rates any further,’ economist says

Below are some initial reactions from economists and other analysts, including their views on what the jobs report means for the Federal Reserve as the central bank considers how to proceed with interest-rate hikes. The main U.S. stock indexes
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looked set to trade higher following the data on nonfarm payrolls, also called NFP.

• “The muted 150,000 gain in non-farm payrolls in October is another sign that the economy’s strength in the third quarter is likely to unwind in the fourth. With wage growth also continuing to slow, it is increasingly hard to imagine the Fed hiking interest rates any further.” — Andrew Hunter, deputy chief U.S. economist at Capital Economics, in a note

• “Fed officials looking for more tempered economic data sure found it in this month’s jobs numbers. I think this report will be received well by markets
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that were already riding high this week after Chair Powell’s remarks convinced many that the rate hiking cycle may have come to an end.” — Jesse Wheeler, senior economist at Morning Consult, in a statement

Related: Jerome Powell adds fuel to the talk that the Fed is done hiking rates

• “The October jobs report provides plenty of evidence that labor market conditions are softening and will allow the Fed to keep policy on hold as it monitors its progress toward returning inflation to 2%. … As expected, the United Auto Workers strike drove a decline in manufacturing employment of 35,000; those workers will be back on payrolls in the November report.” — Nancy Vanden Houten, lead U.S. economist at Oxford Economics, in a note

• “I might have liked a somewhat stronger report, but if you had asked the Fed for dream numbers, these are them. Employment growth is moderating to sustainable levels, labor supply remains robust, and wage growth is moderating to rates consistent with its inflation target.” — Justin Wolfers, University of Michigan economics professor, in a tweet

• “The recent rise in unemployment is worth monitoring, but not yet panic-worthy. The Federal Reserve is taking a ‘wait and see’ approach with the labor market, and that view seems even more appropriate this morning.” — Nick Bunker, head of economic research at the Indeed Hiring Lab, in a note