11 February 2026
If you are covering the latest employment report from the US, please find below a comment from Lindsay James, investment strategist at Quilter:
“The Trump administration had been doing a lot of scene setting to prepare markets for a disappointing jobs report, but ultimately, payrolls came in way above expectations at 130,000 jobs added to the economy in January. This will likely see the Fed continue to hold rates where they are until data suggests other remedies are required, and likely puts pressure on prospective chair Kevin Warsh as President Trump continues to demand rate cuts in the immediate future.
“However, investors currently see the US as a kaleidoscope of contrasting and clashing elements. On the one hand economic growth has been revised up by many economists, driven by the well-publicised heavy levels of AI capital expenditure, a shrinking trade deficit and changes to tax policy that seem to signify the US economic engine will run hot into midterm elections.
“On the other hand, data on household finances shows sign of strain with credit delinquencies slowly rising and a cacophony of warnings from consumer staples businesses that customers on lower incomes are cutting back, struggling in an economy where the costs of essentials has risen faster than wages, with higher interest rates biting along with Trump-era cuts to support programs.
“Asset owners have enjoyed significant wealth gains which continue to fund their lifestyles, whilst others simply haven’t and are increasingly feeling left out in the cold, with the apparent improvement in the jobs market offering as yet small comfort. Furthermore, with significant downward revisions to 2025 figures, investors may be wary to extrapolate one month of data. Whilst from a purely financial standpoint it is the aggregate figures that investors focus on, the current picture of US economic success is neither broad nor deep, making it susceptible to a future reality check.”
