Press "Enter" to skip to content

Fed Cuts May Not Be Required With Good Job Data

The rumors associated with the demise of the jobs market in the United States have appeared to be exaggerated. A labor market that has managed to not be affected by the most negative predictions for the economy has been praised by the economists of Wall Street who were surprised by the persistent high pace of the creation of jobs.

The Labor Department on Friday had reported that the economy was able to churn out as many as 266,000 jobs in the month of November as it smashed the expectations and proved how growth being slow does not necessarily meant that the jobs market is also going to be slower.

The date was a blockbuster by all the indications as it has also reduced the expectations of an aggressive stimulus from the Fed.

UBS which is a banking giant has said that their call for as many as three federal cuts in the fund rates still remains, however, their aggressive call that the Fed must be changing their minds by January has been undermined by the strong payroll numbers that have come today.

It added that although the FOMC is going to fade the report’s strength, they are going to see it as a reason to wait till they get more data. Consequently, they will see the first cut in rates happening in the month of March and then in April followed by June.

The creation of jobs was broad-based and salutary, with the rate of unemployment reaching a low of 50 years at 3.5% as they wage growth too quickened by 3.1% and even the manufacturing sector that has been struggling to add many new positions.

Kelly Rivera
Kelly Rivera Author
Lead Editor At Global Newspaper 24

Kelly has been one of the most knowledgeable personalities in the Global Newspaper 24’s Business section team. While she has completed MBA in Finance Degree, she has always demonstrated her core knowledge in business management and affection toward the freedom of expression through words by crafting superlative news reports for all the readers of the Global Newspaper 24 platform. At present, Kelly works as the Head of the Business Department and is responsible for checking all the news reports for readability while adhering to the quality standards of Global Newspaper 24. Kelly is a super-active personality that loves to write news reports on various topics such as mergers & acquisitions, latest product launches, and major business events.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *