'Increasingly difficult' to justify any further Fed rate cuts for 2025
Trying to predict the next tariff update to hit the newswires is a bit of a fool's errand, so it is perhaps more productive to focus more on the macroeconomic backdrop.
Last week’s Nonfarm Payrolls report was, once again, consistent with a US labour market that remains strong. Companies continue to create jobs at a healthy clip, the unemployment rate is hovering around levels consistent with full employment, and the report showed a surprise uptick in wages in January - monthly earnings rose at their fastest pace since mid-2023.
All of this positive economic news, plus the looming threat of price hikes from Trump's tariffs, makes it increasingly difficult to justify any further interest rate cuts at all from the Fed in 2025.
With rates in the US remaining almost the highest in the G10, we think that it will be difficult for the dollar to sell-off in spite of its admittedly very expensive levels.
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.