U.S. labor market slows but remains healthy, strengthening case for Fed to be in no rush to cut rates

Odaily News Analyst Anstey said that the January non-farm payrolls undoubtedly confirmed that the Fed will maintain a wait-and-see attitude for now. With the job market showing such a situation, policymakers are unlikely to rush to discuss restarting interest rate cuts. Interest rate futures traders expect the Fed to make the next rate cut in May, which was previously expected to be in June.
A report released by the U.S. Bureau of Labor Statistics on Friday showed that nonfarm payrolls increased by 143,000 last month, after a revised increase of 307,000 in December. The BLS said wildfires in Los Angeles and severe winter weather in other parts of the United States had "no discernible impact" on employment this month. The changes in January's employment data and the latest employment data for early 2023 show a slowing but healthy labor market that continues to drive economic growth without causing inflationary pressures. This also helps explain why Federal Reserve policymakers have said they are in no hurry to further reduce borrowing costs after cutting interest rates three times last year. (Jinshi)