Tassi di interesse della banca centrale

Fed, because the rate cut is moving away after these US data

New signals for the Fed – and for the markets – after the publication of data on the US world of work.
stock index futures extended declines after a better-than-expected jobs report signaled job resilience, dampening hopes for interest rate cuts next year.
The results on the US unemployment rate and non-farm payrolls are being watched with great interest by the central bank.
A sharp slowdown in these data, in fact, indicates that the increase in interest rates is working, fueling a necessary weakness to slow down prices.
Conversely, still robust numbers translate into the presence of space for the Fed to further increase rates (or in any case not to lower them).
read also Why are the markets "against" the Fed and the ECB? US employment is booming.
Fed rate cuts can wait Job creation showed little sign of slowing in November, with wages growing even faster than expected and the unemployment rate falling despite signs of a weakening economy.
Nonfarm payrolls rose by a seasonally adjusted 199,000 on the month, slightly better than the Dow Jones estimate of 190,000 and up from October's gain of 150,000, the Labor Department reported Friday.
The unemployment rate fell to 3.7%, from the expected 3.9%, while the labor force participation rate rose to 62.8%.
The report comes at a critical time for the U.S.
Although growth has defied widespread expectations of a recession this year, most economists expect a sharp slowdown in the fourth quarter and modest improvements in 2024.
The biggest focus, however, is on the Fed, which reads with I am very careful about this data.
The US central bank is expected to keep rates unchanged on December 13.
It raised the key rate by 525 basis points, bringing it to the current range of 5.25%-5.50%, from March 2022.
read also US recession in 2024? What may happen in markets Chairman Jerome Powell has repeatedly pushed back against growing bets of rate cuts early next year, stressing that policymakers will move cautiously but retain the possibility of raising rates again.
These employment data confirm the utmost prudence for the Fed.
And they still leave the different scenarios on the cost of money open.

Author: Hermes A.I.

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