Analysis: US Employment Data Revision Will Not Have Significant Impact on Market or Fed Policy Outlook

According to sources, Michael Brown, Senior Research Strategist at London-based Pepperstone, stated: "To be honest, I don't think this will really have a significant impact on the market or the Fed's policy outlook. The employment data has clearly been revised significantly downward, which may lead you to believe that the labor market is stagnating or losing momentum for a longer period than we previously expected, but this is all that people can see from the data." "These data are quite lagging, so it will not have any impact on the Fed policymakers, who are still expected to cut rates by 25 basis points next Wednesday, nor will it have any impact on the market, as the swap rates have hardly changed since the data was released." "If there is any lesson to be learned from this, it is that the US Bureau of Labor Statistics (BLS) does need to improve its data collection methods as this is the second consecutive year of significant downward revisions to benchmark data. However, Trump clearly has his own—possibly not entirely appropriate—ideas about how they should achieve this."

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