
Market Moves
Rate Cut Hopes Squashed by December Payroll Data
The U.S. added 256,000 jobs, considerably more than the 155,000 expected, lowering the chances of interest rate cuts this year.
Chair Jerome Powell declares that the Federal Reserve is in no hurry to reduce rates due to sticky inflation.
Odds are that improved economic news will slow rate declines, but that may not be much of a tonic for stocks, says LPL.
Futures market expects deeper cuts ahead than the central bank bunch projects.
At a 4.5% benchmark interest rate, economic growth will start to suffer, hedge fund guru says.
The central bank’s greater openness these days fuels risky behavior and thwarts flexibility, some say.
Current projections say there will be two hikes in the latter part of 2022.