Strong Employment Data 'Locks In' Rate Cut Space

February 13 — Regan Capital analyst Skyler Weinand said soft January U.S. inflation data won’t boost the odds of Federal Reserve rate cuts in the coming months. The reason? This week’s earlier labor data was stronger than expected: 130,000 new jobs added in January, and the unemployment rate hit 4.3%. “The Fed simply can’t cut rates right now—after all, the economy just posted six-figure job growth,” he noted. Weinand expects the Senate to confirm Woosh as Powell’s successor as Fed chair, but doubts he can build consensus on rate cuts. “We might not see any changes to the Fed’s policy rate this year,” he added. CME’s FedWatch Tool shows investors are currently pricing in at least two rate cuts this year. (FX678)