September Payrolls Beat Strengthens "Higher for Longer" Case

Key Takeaways Nonfarm payrolls added 190,000 jobs against a 180,000 consensus, beating expectations. The unemployment rate held at 3.8% when economists expected it to tick up to 3.9%. Wage growth accelerated to 4.2% year-over-year from 4.1%, the wrong direction for Fed policy. The three-month average sits around 177,000, signaling a labor market that is not cooling as quickly as the Fed needs. The 10-year Treasury yield climbed to 4.77%, but the market's muted reaction suggests investors are not pricing the "higher for longer" scenario. The September jobs report delivered a beat that matters: nonfarm payrolls added 190,000 jobs against a 180,000 consensus, while the unemployment rate held at…