Strong Jobs Reduce Fed Easing Bets
Strong U.S. jobs data reduces expectations for Federal Reserve monetary policy easing.
Too little corroboration in the last 3 days to call a trend (23 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Despite slowing job growth and wages in July, the unemployment rate impressively dropped to 4.1%, indicating near-full employment. This figure, however, challenges the Fed's long-held natural rate projection of 4.2%, raising intricate policy questions."
"Today's smaller-than-expected increase in weekly jobless claims signals strength in the US labor market that is hawkish for Fed policy."
"CreditSights' Griffiths said if next week's employment data is stronger than expected, that may reinforce concerns the Fed should have raised rates this week and accentuate the curve steepening."
"The bond market has also been pressured by US economic resilience, manifesting in solid jobs and growth figures. That's helped shift the expectation for Fed monetary policy this year from cuts to hikes."
"jobless claims for the week ended July 18 came in at 187,000, below the 212,000 that economists polled by Dow Jones were expecting."
"Following the data, markets sharply pared expectations of a July rate hike, with the implied probability falling to around 16%. US Treasury yields also retreated, while the US dollar weakened against most major currencies."
"Indian government bonds may see further gains as US jobs data eases rate hike concerns."
"The dollar struggled to keep its head above water after posting its worst weekly performance since April last week, dragged by the U.S. payrolls report showing job growth slowed sharply in June, curbing market expectations of a rate hike."
"Sep T-notes posted modest gains on Monday amid carryover support from last Thursday's weaker-than-expected US June payroll report, which reduces the chances of the Fed tightening monetary policy."
"The jobs data release on Thursday showed that the unemployment rate in the US dipped to 4.2 per cent in June from 4.3 per cent a month ago. This has raised doubts that the US Federal Reserve will not be in a hurry to increase the interest rates immediately. As long as the yield stays below 4.55 per cent, the downside will remain open to see 4.25 per cent."