Dec. 4 - Private employers added a stronger-than-expected 215,000 new jobs in November, raising expectations the Federal Reserve may soon reduce its $85 billion a month bond buying program. Conway G. Gittens reports.
The drumbeat of new hiring continues to get louder. Private employers signed up 215,000 new workers in November, topping even the most optimistic forecasts and October's job growth was revised higher, according to the monthly survey by payroll processing company ADP. The two months combined show employers were not as scared off by the Washington shutdown or the uncertainty surrounding the Affordable Care Act as previously feared. That is raising expectations that the labor market is moving in a direction that could soon convince the Federal Reserve to wind down some of the extra support its been giving to the economy. Some economists say the Fed could start trimming its massive bond buying program as early as this month, but others are waiting to see what the government jobs report says on Friday, since it is seen as a more accurate measure of the labor market. But investors are placing their bets the Fed will start tapering sooner rather than later. Treasury yields are on the rise and stocks are heading for the fourth down day in a row.