Big upside in December U.S. payrolls cements a Fed hold this month – RBC Economics
Source Fxstreet
U.S. labor market data continue to show strength towards the end of last year, in line with job openings data that turned around to rise consecutively in October and November, RBC Economics’ economists note.
Fed set to hold this month
“Concerns over substantial weakening in the jobs market have continued to ease, leaving the Fed with much less urgency to cut interest rates.”
“The Fed already pivoted to a more gradual easing cycle in their last meeting In December. We think the odds of an additional rate cut this month are low, and the central bank will more likely be holding rates steady at the current 4.25% - 4.5% range throughout 2025.”
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
The US Federal Reserve is expected to cut the policy rate for the first time in 2025.
The Bank of Canada (BoC) is widely anticipated to reduce its benchmark interest rate by a quarter percentage point on Wednesday, taking it to 2.50% after three consecutive ‘on hold’ decisions.
The risk rally on global indices takes a breather amid a typical market caution heading into the key central bank event risks, with the US Federal Reserve (Fed) policy announcements eagerly awaited.
The Pound Sterling (GBP) faces selling pressure against its major peers on Wednesday after the release of the United Kingdom (UK) Consumer Price Index (CPI) data for August.
The dollar weakened, equities fell, and gold set new records on Wednesday as investors waited for a Fed rate cut later in the day.
