Hi HODLers, Hiveans and Lions,
On Friday, we got some very important number from the US.
U.S. Added 303K Jobs in March, Outpacing Expectations for 200K
This is very good for the US economy but the markets were hoping to have softening data that would help to lower inflation and might even help to get the FED to do some future rates cuts sooner rather than later.
March has obviously come and gone with no rate cut and traders ahead of today's numbers had moved expectations of the first rate cut to June or July, according to the CME FedWatch Tool. A total of just three rate cuts are expected for the full year and even that could be too much.
Some FED officials such as the Minneapolis Fed President Neel Kashkari suggested the possibility of no rate cuts at all in 2024. His remarks prompted a sharp reversal in stocks, with the major averages closing down more than 1%...
FED rates continue to be elevated and the 10Y US Rate is now sitting at 4.4%! Definitely not good for my bond portfolio...
Let's see how this develops but personally, I kind of like this environments of an economy thriving while rates stay elevated and assets slowly grow (stocks, real estate...).
I am just worried that inflation will pick up again. This would be a disaster. It should stay under control as long as the FED/Government does not print more money!
Stay safe out there,