May's job growth and wage increase suggest the Fed may hold off on rate cuts
May's job growth and wage increase suggest the Fed may hold off on rate cuts

Shaking Up Wall Street

Well well well it appears May's job growth and wage rise has set tongues wagging among the Wall Street elite. With nonfarm payrolls exceeding expectations and average hourly earnings soaring it seems the Federal Reserve may be stirring up a storm by holding off on interest rate cuts.

Flummoxed at the Parlor Game

"I've been a little flummoxed at the parlor game of when will the Fed start cutting," said Liz Ann Sonders. It's as if Wall Street is playing a game of high stakes poker with each move and countermove shrouded in mystery.

Lowering Expectations Mr. Bond

Following the job numbers futures traders are cutting bets on rate cuts faster than I can order a martini shaken not stirred. The odds of a rate reduction are plummeting leaving investors to wonder what the next move will be.

Balancing Act

"With these conditions the Fed can lower the Fed Funds rate from very restrictive territory to merely restrictive positioning," said Rick Rieder. It's a delicate dance between price stability and full employment not unlike navigating a laser filled room.

Citigroup's Bold Prediction

Citigroup always one step ahead predicts the Fed won't move until September but then the floodgates will open with a series of rate cuts. It's like watching a high stakes spy mission unfold with twists and turns at every corner.


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