US jobs report could be key to Fed's rate hike timing: Mohamed El-Erian, Allianz SE

WASHINGTON: The monthly jobs report could be a swing factor for the Federal Reserve in determining whether to raise rates next month, said Mohamed El-Erian, chief economic advisor at Allianz SE and a Bloomberg View columnist.

“If they see solid jobs growth -in excess of 200,000 -and second if they see wages finally move up, that is a signal they better get going,“ El-Erian said on Sunday in a Fox News broad cast interview. The US econo my probably added 220,000 jobs in August and average hourly earnings rose 2.1% over the prior year, ac cording to econo mists surveyed by Bloomberg News in advance of the September 4 report. Federal Reserve vice chairman Stan ley Fischer said on Saturday at a central bank conference at Jackson Hole, Wyoming, that he expected inflation to move back to the central bank's 2% target over time.

El-Erian said while the first rate increase in nearly a decade is a close call, “my gut feeling is they won't go in September.There is too much global uncertauinty.“

US markets have been volatile amid concern over slowing in China and that volatility is likely to persist over the next few weeks, El-Erian said. “The international indicators are saying be careful,“ he said.