BlockBeats News, March 6th, Carson Group analyst Sonu Varghese stated that the disappointing February employment data is unlikely to alter expectations for a Fed rate cut this year. He said the report “reminds us that risks to the labor market have not dissipated.”
However, “even before the upcoming energy price shock and AI-related bottlenecks, the inflation level is already stubbornly high.” Varghese expects that these two factors will “keep the Fed cautious on rate cuts – unlikely to cut rates in the near term.” The current market widely expects only one rate cut this year. (FXStreet)
