While the US October non-farm employment data was announced below expectations, greening the markets, the FED’s next move aroused curiosity.
All eyes are on when the US employment report is announced as more positive than expected The US central bank (FED) translated into the next interest rate move. In money markets employment Since the report is an important data regarding inflation This cooling in inflation FED of the symptom interest to the discount It created a perception that it could encourage people to leave.
This positive perception triggered an increase in the markets. Both Nasdaq And SP500 Both the front and the cryptocurrency market opened the week in green.
Employment data announced by the FED last Friday is below expectations 150 thousand It was announced as.
According to the CME FedWatch Tool, the central bank March meeting, the headline interest rate will be lowered to current levels. 25 basis points The probability of falling below doubles in a short time to 25.9% rose.
In addition, the possibility of keeping interest rates at current levels is expected for the December meeting. 95.4% and for fireside meetings as 89.4% updated. According to these data, while there is no expectation of an interest rate cut for now, the rate at 0% remained.
Making a statement on the subject, Allianz Investment Management senior investment strategist Charlie Ripleystated that the positive employment report proves that the FED’s monetary policies are correct:
Overall, the jobs report could signal a turning point in the U.S. economy. But more importantly, it’s a nod to the Fed because the data shows monetary policy is working, and it should bring less debate about whether the policy is restrictive enough.