October Rate Hike in Jeopardy as Jobs Report Fails to Impress

The Federal Reserve's next interest rate hike is now uncertain after a disappointing jobs report. The Labor Department reported that employers added just 29,000 jobs in September, far fewer than the expected 90,000.

Michael Feroli of JPMorgan Chase said it would take a very strong CPI to revive an October rate hike. Goldman Sachs had already moved its forecast to December, and Fifth Third's Adams agreed that upcoming price data holds more sway than the jobs report.

The weak hiring numbers argue for patience, but high energy and factory costs argue for another hike. The Fed's next decision will be influenced by every inflation report, especially the September Consumer Price Index.