Breaking News: Strong Jobs Report Could Slow Fed Rate Cuts - Analysts
In response to a robust September jobs report, Wall Street analysts are suggesting that the Federal Reserve may slow down its rate cuts. Capital Economics predicts a 25 basis point cut after the labor market showed resilience with a gain of 254,000 non-farm payrolls. The unemployment rate dropped to 4.1% and average hourly earnings rose by 0.4% month-over-month, pushing annual wage growth to 4.0%.
Vital Knowledge and Evercore ISI share similar sentiments, highlighting strong economic data and suggesting a 25bps rate cut in November. Despite some softness in manufacturing, Morgan Stanley believes that the broad reacceleration of the labor market supports the view that the Fed will implement rate cuts in both November and December.
Overall, the consensus is that the Fed may slow the pace of easing, but the business cycle remains solid. The strong jobs report is seen as a positive signal for the economy, with expectations of continued rate reductions. The market should not be too concerned as rate cuts are still on the horizon. This news could impact investment strategies and financial decisions moving forward. Stay informed and watch for potential market shifts.