MNI US Employment Insight: Dare We Say Goldilocks

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• The August payrolls report saw much stronger than expected payrolls growth in August along with reasonable upward revisions that limited the extent of the July weakness.
• The unemployment rate remained at a low 4.1% as expected, as did wage growth at a contained 3.1% Y/Y.
• A hawkish reaction has been scaled back in the hours since the release but it has still limited the dovish reaction in front rates to Thursday’s dovish Waller remarks.
• Fed Funds futures price 14.5bp of hikes for the Sep 16 FOMC decision and a cumulative 34.5bp to year-end.