Expectations for the U.S. central bank to cut rates by year end have been slashed to 117 basis points (bps) from 140 bps just before the release of last Friday’s blowout jobs report, trading in the overnight Fed funds rate show.
Signaling continued strength in the labor market, the Labor Department released a closely watched report on Friday showing employment in the U.S. soared by much more than expected in the month of January.
A closely watched report released by the Labor Department on Friday showed employment in the U.S. jumped by much more than expected in the month of December. The Labor Department said non-farm payroll employment surged by 216,000 jobs in December compared to economist estimates for an increase of about 170,000 jobs.
The latest policy meeting readout, by contrast, said that "all participants judged it appropriate to maintain" the current rate setting, a stance that will be clarified at the Fed's Dec. 12-13 meeting when policymakers issue a new set of detailed projections for interest rates and the economy.