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)

View Original
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Central banks worldwide are holding intensive policy meetings this week, with most maintaining interest rates unchanged to counter inflation risks

On March 19, non-USD currencies rose while the US Dollar Index fell over 1%. Multiple central banks held meetings this week and decided to maintain interest rates unchanged, remaining vigilant about inflationary risks from rising energy prices. Markets are concerned about escalating tensions in Iran and stagflation risks.

GateNews17m ago

U.S. S&P 500 Index Turns from Decline to Gain, Oil Price Breaks Below $93/Barrel

Gate News Report: On March 19, the U.S. S&P 500 Index (the benchmark index for the U.S. stock market) reversed early-session losses and recorded gains, while oil prices fell below $93 per barrel. The decline in oil prices provided support for the stock market, easing some inflationary pressures and boosting investor sentiment. This oil price decline occurred against a backdrop of continued market volatility and economic uncertainty.

GateNews2h ago

Cryptocurrency Market Sinks as Trades discount Fed rate cuts

Rising oil prices due to the US-Iran conflict are heightening inflation concerns, affecting investor behavior and prompting risk aversion in markets, especially cryptocurrencies. Policymakers remain cautious, suggesting potential delays in rate cuts amid worsening inflation forecasts from the IMF.

CryptoBreaking2h ago

Private Credit Market Default Rate Rises to 9.2%, Liquidity Concerns Intensify

The private lending market is expected to see default rates rise to 9.2% in 2025, facing liquidity challenges and elevated borrowing costs. Small business default rates have reached 15.8%, though lenders are controlling losses through restructuring. Market expansion is bringing liquidity risks, and economic deterioration could expose underlying vulnerabilities.

GateNews4h ago

This Friday Traditional Financial Markets Welcome 'Quadruple Witching Day,' Bitcoin Volatility May Rise Accordingly

This Friday will see the quarterly derivatives event "Quadruple Witching Day," which may lead to increased market volatility. The current market environment is highly volatile, with the VIX index breaking through 35, and Bitcoin volatility is also likely to rise. Additionally, on March 27th, there is a large-scale derivatives expiration, which will intensify market volatility risks.

GateNews5h ago

Inflation Risks Remain Elevated as Geopolitical Tensions Involving Iran Continue

Inflation risks remain high due to ongoing geopolitical tensions, especially regarding Iran, contributing to economic uncertainty and influencing potential interest rate cut timelines this year.

GateNews6h ago
Comment
0/400
No comments