The September jobs report landed as a "Goldilocks" outcome for Fed Chairman Kevin Warsh, according to Jeremy Siegel — Wharton professor emeritus and WisdomTree chief economist — in comments to CNBC.
Siegel's read: a labor market neither hot enough to force the Fed's hand nor cold enough to demand rescue gives Warsh room to steer the rate path on the Fed's terms heading into the next FOMC meeting.
For markets, the framing matters more than any single data point. A "Goldilocks" labor backdrop is the scenario in which the Fed can cut — or hold — without appearing to chase either inflation or unemployment, keeping both the bond market and equity investors in a constructive stance.
The next test of that reading comes at the FOMC itself, where Warsh's press conference will show whether the committee shares Siegel's comfortable interpretation or sees something in the details that warrants a different course.
Via @cnbctv.
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