Mohamed A. El-Erian , Columnist

Short-Term Implications of the Jobs Report

August's numbers will solidify market expectations of a continued dovish Fed.

September 1, 2017 at 2:39 PM UTC

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

Yellen has her work cut out for her.
Photographer: Chip Somodevilla/Getty Images

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

The weaker-than-expected U.S. jobs report for August should not materially change expectations for the economy, which remains, for now, stuck in a “new normal” low-growth equilibrium.

The data released Friday will amplify expectations of a Federal Reserve that remains looser for even longer, placing downward pressures on market interest rates and the dollar, but that also will have to compete with the latest news from the European Central Bank. And within the Fed, it amplifies the tug of war between those who are worried about lowflation and those concerned about the risk of future financial instability.