• Life,  Wealth

    How the US Labor Market Affects Inflation and Interest Rates

      Ever since the beginning of the year, the market has continuously raised interest rate expectations, and U.S. bond yields have experienced wide fluctuations. In early May, markets overlooked structural pressures in the labor market and wagered on rate cuts in the second half of the year. However, the higher-than-expected PCE reading in April attested to the resilience of the labor market. The market’s expectations for the Fed’s policy stance have been reversed once more, and interest rate hike expectations have been revived. As of May 31, CME interest rate futures implied fed funds target rate expectations showed that the probability of the Fed stopping raising interest rates in June was…

error: Content is protected !!