"Precisely how much higher the federal funds rate will need to go from here and for how long policy will need to remain restrictive will depend on how much inflation and inflation expectations are moving down," Mester said in a speech at the Money Marketeers of New York University. Meanwhile, Cleveland Fed President Loretta Mester said on Wednesday she predicts rates will need to move higher. “For instance, at the next meeting in May, the chances of a rate hike according to futures remained at 47%, after having been as high as 70% earlier in the week,” Jim Reid and colleagues at Deutsche Bank wrote in a note to clients.
Some investors are maintaining “a fairly dovish path” from the Fed over the coming months. The gradual slowing in the labor market may be encouraging for policymakers. In additional jobs data earlier this week, the government's Job Openings and Labor Turnover Survey (JOLTS) found that openings receded more than expected to 9.931 million, marking the first time the number dropped below 10 million since May 2021. This would be significantly lower than the average job gains of 343,000 over the last six months. Ryan/The Boston Globe via Getty Images)Įconomists surveyed by Bloomberg expect Friday's jobs report to show 240,000 jobs created last month. Restaurants implementing "kitchen fees," meant to narrow the gap between wages for tipped and un-tipped workers. But market strategists say it's unclear if ADP’s results foreshadow a softer nonfarm payrolls report Friday, where Wall Street's attention now turns.īoston, MA - February 24: An employee works in the kitchen at Democracy Brewing. That figure was well below the consensus estimates of 210,000 and lower than the revised 261,000 jobs gained in February. This comes after a report Wednesday from the private payroll firm ADP showed that employers added 145,000 jobs in March as the labor market showed signs of slowing from its strong pace so far this year. Continuing claims were also revised up for the week ending March 18 from 1.689 million to 1.823 million. The prior week was revised up to 246,000 given the government's updated seasonal factors. unemployment benefits rose by 228,000 for the week ended April 1, the Labor Department data reported, higher than consensus estimates of 200,000. The jump comes as the OPEC+ coalition, in a surprise decision last weekend, decided to cut oil production. At the same time, gas prices nationwide have notched up to a five-month high, surpassing $3.50 per gallon, according to data from AAA.
economic data, as well as hopes that the Fed will raise rates more slowly.Ĭrude oil ( CL=F) continues to hover around $80 a barrel, little changed after big gains to start the week. On the commodities front, gold futures ( GC=F) are shining right now after the metal managed to break the $2,000-per-ounce barrier on the back of weak U.S. The yield on the 10-year note was up slightly, while rate-sensitive two-year note yields climbed to 3.82% Thursday.
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