A pause by the Fed would give a temporary boost to stocks.
It's much more likely now, I think, that the Fed will raise the fed funds rate to at least 5 percent.
This is probably as good as it's going to get for the stock market any time soon. I don't believe the Fed is actually close to ending the rate hikes.
The economy is quite strong and employment costs are rising, and that's what the Fed is going to be concerned about. ... it's a negative for interest rates. It's much more likely now, I think, that the Fed will raise the federal funds rate to at least 5 percent.
Even if the Fed skips raising rates at the next meeting, it has to be seen as a symbolic act and not as a change in monetary policy. Stocks would only get a temporary boost.
The report showed the economy is quite strong and employment costs are rising and that's what the Fed is going to be concerned about.