The sky may not be falling after all. Today the Labor Department reported that employers added 110,000 workers in September and they revised the August data to reflect that 89,000 jobs were added. The data correction is the larger news in that it reverses an earlier report that indicated the first loss in jobs four years. The employment scare raised fears that recession was more likely and probably played a significant role in the Fed’s decision to drop rates last month.

Perhaps the Fed has been correct in its view of the economic recovery and the patience they have demonstrated in raising rates.  Many have criticized their reluctance to raise rates faster feeling that it is important to achieve what they believe are market neutral rates sooner rather than later.  But maybe they have it right after all and have chosen the correct pace for rate hikes.  Too fast a pace might choke the recovery.