Zacks Investment Management’s Post

After the September jobs report showed the U.S. added more jobs than expected last month, Zacks Investment Management Client Portfolio Manager Brian Mulberry questioned the Fed’s latest rate cut and what the data will mean for monetary policy moving forward. He shared his take with Vivien Lou Chen of MarketWatch, noting, “‘They might be easing too much, too fast right now in a way that sparks more inflation down the road.” Read more here: https://lnkd.in/gF8APjd4 #Inflation #Employment #Economy #InterestRates

A hotter-than-expected US jobs report and higher inflation expectations are diminishing the probability of interest rate cuts in 2025. Markets are now pricing in only one 25bp cut for all of 2025, compared to 100bp predicted just one month ago. Is the return of higher for longer FED policy. Source: Financial Times w/James Politi #interestrates #FED #jobsreport

The market has been pretty crazy the last few weeks with changes to investor mindsets. Bad news may be bad news again. Volatility is expected. Some Investors have been looking forward to rate cuts and other investors are thinking rate cuts will only begin when we have significant risk of recession including high unemployment. The recent jobs report showed unemployment (see the chart) is still below historical averages, but did increase month over month by .2% to 4.3%. 4.3% is up from 3.6% where unemployment was in May 2022 when the rate increases began. New Jobless claims were released yesterday. This information showed that we had fewer new unemployment claims for the week than expected, which is good news for those hoping that the Fed is on pace for the ‘Soft Landing’ scenario. (Rate cuts happening without being in a recession) The market responded with the S&P having its best day since 2022. The index is still down from its all time high set in July 2024 by about 6%, but is up over 25% over the last two years. Reach out to learn more about how to plan ahead for these economic developments. Sources: U.S. Bureau of Labor Statistics, (Accessed August 9th 2024) https://lnkd.in/dk2kAM7 #BulldogFinancialPlanning #hourlyfinancialplanning #BulldogFP #financialplanning #financialfreedom #finance #financialadvisor #investing #financialgoals #wealth #retirementplanning #financialplanner #money #wealthmanagement #moneymanagement #investmentaccount #401k https://wix.to/24aVk6X

Powell: Fed to move cautiously on rate cuts. The Federal Reserve, led by Chair Jerome Powell, emphasized its commitment to cutting rates cautiously, citing economic stability and inflation control. Smaller cuts are expected in 2024, with flexibility based on employment data. https://lnkd.in/eWgxPbCK Federal Reserve Board #ratecuts #interestrates #inflation #economicstability #monetarypolicy Raphael Bostic #employmentdata MFED: Model Federal Open Market Committee #jobmarket MENA Newswire

Do people need to lose their jobs for the economy to progress? During 2022 and 2023, the Fed raised interest rates to temper economic growth. On the other hand, workers are more concerned about wage increases than cooling the economy. In this article, Lisa Shallet highlights that the Fed lacks an explicitly stated framework for balancing inflation and employment, despite its dual mandate… As we navigate this interesting point in the economic cycle and with the election just around the corner, stay tuned for taxation, deficit and debt conversations to be bantered about like a racing shell on turbulent water.

Finally, some positive news on the economy front! The data from the Bureau of Economic Analysis surpassed everyone's expectations by growing at 2.8% in Q2, a marked jump from Q1's 1.4% rate. 💰📈 This will only encourage the Federal Reserve Board to lower the interest rates ➡️ boost borrowing ➡️ hiring resumes. Currently, the Fed is still gauging when to cut the rates after raising them to a 23-year high of 5.25% - 5.5% in response to the inflation shock from the pandemic. While consumer spending has increased, the labour market has softened considerably, pushing the demand for a rate cut. So much so that Steven Blitz of TS Lombard Research Partners warns of a recession late this year, should the Fed fail to follow through on the aforementioned cuts. Hopefully, September sees a desperately needed rate cut, if not August. via Financial Times: https://lnkd.in/g4VyuZxW #economy #interestrates #jobmarket #US #macroeconomics

📊 Appreciated the opportunity to share Quintet Private Bank’s views on the all-important US jobs data with IFA Magazine. The numbers look consistent with an economy that’s slowing but not suddenly going through a crash. The Fed, which is likely to start its rate cutting cycle this month, is now much more focused on mitigating downside risks to growth than upside risks to inflation. While we might continue to see bouts of volatility, a key development is the return of the inverse correlation between stocks and bonds, which could help cushion possible market wobbles. #economy #inflation #centralbanks #markets

The recent strong U.S. jobs data has led to a significant rethink on interest rates, which could have substantial impacts on various markets. The unexpectedly high employment numbers suggest that the Federal Reserve may not need to cut borrowing costs as much as previously anticipated. This shift in expectations could affect trades that were based on the assumption of falling interest rates, such as those involving rising Treasury prices and a weaker dollar https://lnkd.in/gVYW98A8

📊 The U.S. labor market has returned to pre-pandemic levels, potentially bringing Federal Reserve rate cuts closer. As employment figures stabilize, the Fed may consider easing monetary policies to support sustained economic growth. This development signals a significant step towards economic normalization and could influence investment strategies in the coming months. ING James Knightley #LaborMarket #EconomicTrends #FederalReserve #Investment #MarketInsights

Financial markets are expected to end 2024 strong, driven by aggressive Fed rate cuts, but concerns remain—especially around the job market. As BOK Financial noted prior to the latest report, the Fed has been cautious about cooling labor market conditions . The September jobs report showed 254,000 jobs added, but many were concentrated in lower-wage sectors. This juxtaposition between rising market optimism and consumer financial strain, with delinquencies climbing, raises the question: is this recovery reaching everyone? - The Statement - https://lnkd.in/gqFiEFqH #JobsReport #MarketOutlook #EconomicTrends”