Strong jobs data throws off Fed’s rate cut timeline
The May jobs report came in stronger than expected with the U.S. economy adding 139,000 jobs last month. Eddie Ghabour, co-founder, Key Advisors Group, joined TheStreet to break down what this means for the Fed’s rate cut timeline.
Related: May jobs report crushes recession fears, market expert says
Full Video Transcript Below:
EDDIE GHABOUR: So how this affects their rate. The Fed rate timeline is I think you can look at it both ways. I personally don’t think the Fed is going to cut this summer OK. And I don’t think you have to if the economy continues to be strong and show resilience, it’s OK for it to slow down a little bit because that’s naturally what you’re going to do when you have a heated economy is you’ll see certain slowdowns, but there’s a difference between a slowdown and heading trending in a way that’s going into a recession. So I think this got buys the Fed more time, and I only expect one rate cut this year. And that’s probably going to come in the September time period. And that could cause some volatility as well too, because I know the administration wants to see cuts and they’ll probably call the Fed out on it. I think the Fed has proven they’ll stick to their guns and cut when they feel like the data supports cutting. So we only expect one rate cut this year.
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