Analyst: Strong employment data "locks in" the possibility of interest rate cuts

BlockBeats News, February 13 — Regan Capital analyst Skyler Weinand stated that weak U.S. inflation data in January does not increase the likelihood of the Federal Reserve cutting interest rates in the coming months, because earlier this week, labor market data was stronger than expected — 130,000 new jobs added in January, with an unemployment rate of 4.3%.

The Federal Reserve “currently cannot cut rates at all, after all, the economy has just created six-figure employment numbers.” Weinand expects the Senate to confirm Waller to succeed Powell as Federal Reserve Chair, but doubts whether he can build consensus on rate cuts. “This year, we may not see any changes in the Federal Reserve’s policy interest rate.”

CME FedWatch Tool shows that investors are currently pricing in at least two rate cuts this year. (Jin10)

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