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Fed Decision May Hinge on Which Holds Sway: Data or Outlook

  • Market turmoil could delay policy makers despite job growth
  • Dutta: Numbers are saying `Go,' but markets are saying `No'
Bloomberg business news

El-Erian: Jobs Report Creates Uncertain, Tentative Fed

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The Federal Reserve’s decision on whether to raise interest rates this month is coming down to a simple question: Are policy makers data dependent or outlook dependent?

The flow of economic statistics from the government and elsewhere in the run-up the Fed’s Sept. 16-17 meeting, punctuated by Friday’s labor report, mostly suggests that the first rate increase in nine years would be justified. Automobile sales have been strong, the housing market is buoyant and joblessness has fallen to a level that most policy makers reckon is equivalent to full employment, even though inflation remains below the Fed’s target.