Gregory Faranello, head of U.S. rates trading and strategy at AmeriVet Securities, said it was a very solid report that supports market expectations that the Federal Reserve will skip this month's meeting or even more. It is also an important number at a time of transition between two administrations. The focus now turns to inflation. Higher inflation data and a strong job market will increase calls for rate hikes as a new administration takes office. (Golden Ten)
Molly McGown, U.S. interest rate strategist at TD Securities, said the upcoming CPI would serve as a "higher threshold" for the Federal Reserve to pause its rate-cutting program at its next meeting after the jobs data is released. TD Securities expects the Fed to pause rate cuts early next year as policymakers review Trump's fiscal policy after he takes office in January. "We know from Powell that once he knows what the actual policy is, he will start putting it into the policy framework," Molly...
Howard Marks of Oaktree Capital said US interest rates would be in the 3-4 per cent range after the Fed cut rates. Mr. Marks, co-chairperson and co-founder of Oaktree Capital, told a conference in Melbourne on Thursday that the Fed would cut rates from 5.25 per cent, 5.5 per cent in an emergency to the 3 per cent line. He also stressed that he believed rates would remain at the 3 per cent line and would not return to zero, 0.5 per cent or 1 per cent.
Gennadiy Goldberg, head of U.S. interest rate strategy at TD Securities, believes that the initial request data is very positive for the market as a whole. It reinforces the fact that the growth momentum in the labor market is not slowing as reflected in the non-farm payrolls report, and it also reinforces that there are no very significant layoffs in the economy. What it confirms is that we are seeing an increase in the unemployment rate due to the addition of new labor rather than massive layo...