The latest jobs data will likely not put any more urgency on the Fed to reverse course soon.
The U.S. economy in December added 216,000 jobs, exceeding economists’ expectations and giving the Federal Reserve another reason to tap the brakes on the fervor for interest rate cuts.
Friday’s Labor Department employment report is the most significant snapshot of the U.S. jobs picture since the Fed signaled last month that it was done hiking rates amid mounting evidence that inflation is declining. The pivot helped fuel a year-end stock market rally as well as hopes for an initial rate cut in March.
Fed officials have since tried to temper expectations. Fed meeting minutes released this week showed there was no clear timeline for easing monetary policy amid heightened economic uncertainty.
The latest jobs data will likely not put any more urgency on the Fed to reverse course soon.
……..
- Discussion
-
U.S. job growth beats expectations, taking pressure off Fed cuts https://t.co/rAfejmabhg
— POLITICO (@politico) January 5, 2024
You must be logged in to reply to this topic.