Hiring Is Expected to Slow, But Don't Bet on Rate Cuts Just Yet
Wall Street is expecting the Federal Reserve to keep interest rates at their current levels for the next few months at least, even though jobs data due out this morning is expected to show a slight slowdown in the U.S. labor market.
The majority of investors think the central bank will hold borrowing costs at its June and July meetings, then cut in September, according to the CME FedWatch tool.
That’s because the U.S. economy still looks solid enough, despite some recent soft data. Economists polled by FactSet expect the nonfarm payrolls report due out at 8.30 a.m. Eastern time to show that employers added 130,000 jobs last month–that would mark a slight dip from April, it likely wouldn’t be enough of a slowdown to put the Fed in panic mode.