Daily digest market movers: US Dollar stable as Fed officials highlight healthy labor market
- Hints on the labor market were provided by Federal Reserve (Fed) officials who shared views that the market is not dire despite slow job growth.
- Barkin noted that businesses are managing headcount through attrition or slowing hiring, but not laying people off, indicating cautious but not panicked market behavior.
- Schmid reaffirmed that inflation is almost within the required range and that the strength of the economy will determine the policy path.
- Goolsbee, however, warned that it's important to determine whether the job market cooling is a temporary or ongoing event.
- The weekly jobless claims data also helped calm markets, with initial claims coming in lower than expected at 233K versus an expected 240K.
- Market pricing suggests less than 10% odds of an immediate cut and around 80% odds of a cut in September. These estimates indicate that markets are still fully pricing in 100 basis points of Fed easing by year-end, as well as 175-200 points of total easing over the next 12 months.
- Hints on the labor market were provided by Federal Reserve (Fed) officials who shared views that the market is not dire despite slow job growth.
- Barkin noted that businesses are managing headcount through attrition or slowing hiring, but not laying people off, indicating cautious but not panicked market behavior.
- Schmid reaffirmed that inflation is almost within the required range and that the strength of the economy will determine the policy path.
- Goolsbee, however, warned that it's important to determine whether the job market cooling is a temporary or ongoing event.
- The weekly jobless claims data also helped calm markets, with initial claims coming in lower than expected at 233K versus an expected 240K.
- Market pricing suggests less than 10% odds of an immediate cut and around 80% odds of a cut in September. These estimates indicate that markets are still fully pricing in 100 basis points of Fed easing by year-end, as well as 175-200 points of total easing over the next 12 months.
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