Fed confident about cutting interest rates despite jobs surge

Source: Financial Times [UK]

“The Federal Reserve is set to press ahead with plans to cut rates despite an unexpected surge in jobs growth in January, with a $7tn immigration-led economic boost and fewer job vacancies convincing officials the labour market is unlikely to trigger inflation. Fed officials said this week that last Friday’s payrolls data, which showed the US economy added 353,000 jobs in January — more than double the expected amount, justified their patience in keeping borrowing costs on hold at a 23-year high of 5.25 to 5.5 per cent. But most officials think they remain on track to cut rates later this year, with inflation likely to fall even if the US economy continues to add jobs.” (02/11/24)