Pimco's Kiesel: Fed Can Raise Rates Later This Year

Mark Kiesel discusses the recent payroll data, highlighting a gradual improvement in the labor market with 2.5 million private sector jobs added over the past year. Despite a softer month, the trend remains positive with employment growth at 1.6% and wages up by 2.5%. This is beneficial for consumer spending, which is expected to rise. The Federal Reserve is anticipated to raise rates later in the year, although June is unlikely due to the Brexit vote. Market expectations are not aligned with the possibility of rate hikes, but one or two hikes are expected by year-end.

What was the recent trend in payroll gains as discussed by Mark Kiesel?

• Highest gain in seven months

• Lowest gain in seven months

• No change in payroll gains

• Unpredictable payroll gains

How many private sector jobs were added in the past year according to the discussion?

• 1 million

• 2.5 million

• 3 million

• 4 million

What is the current growth rate of employment mentioned in the video?

• 1.2%

• 1.6%

• 2.5%

• 2.0%

What is the expected impact of the income proxy increase on consumer behavior?

• Decrease in consumer spending

• No change in consumer spending

• Increase in consumer spending

• Uncertain impact on consumer spending

What is the probability of a rate hike by the Federal Reserve in June, as discussed?

• 15%

• 2%

• 10%

• 20%