Once the US government shutdown ends, heavy data such as non-farm payrolls and CPI will "spew out", destined to bring a "bloody storm"! Traders have started hedging... Click to view...
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Morgan Stanley said the US non-farm payrolls report should reduce the likelihood of a near-term rate cut by the Federal Reserve. With the inflation outlook more favorable, a rate cut in March remains more likely.
Morgan Stanley said the US non-farm payrolls report should reduce the likelihood of a near-term rate cut by the Federal Reserve.
After the release of the US non-farm payrolls data, traders now see an 85% chance of the Federal Reserve cutting interest rates in December, compared with 67% before the release of the jobs report.
Mr. Summers, the former Treasury secretary, said that while the August non-farm payrolls report was not particularly bad, it did make it harder to predict how much the Federal Reserve might cut interest rates this month. "The data, while not showing very significant weakness, certainly won't give you a sense of relief if you're concerned about recent statistical trends," Mr. Summers said in an interview.