Featured Market Data
Fed’s Attention Shifts to Employment
Lower than expected growth in July payrolls (114K) and an increase in the unemployment rate to 4.3% raised market concerns in early August that the Fed might be behind on cutting interest rates. During August, Fed speak increasingly focused on employment and provided indications the Fed plans to cut rates in its September meeting. Later, at the Fed’s annual meetings in Jackson Hole, Wyoming, Fed Chair Powell confirmed the Fed’s shift in focus to the labor market with risks to inflation diminishing. Markets will be closely examining the employment report on September 6. Currently, the market is fully pricing in rate cuts at each of the three remaining meetings in 2024 with cuts totaling at least 2.00% priced in by July 2025.
