6 October 2023
If you are covering the latest US employment data, please find below a comment from Richard Carter, head of fixed interest research at Quilter Cheviot:
“As the market looks to come to terms with higher interest rates for longer, today’s US job numbers confirm this scenario is most likely to play out. The surge in new jobs was unexpected and adds to the belief that the US economy remains too hot, and that interest rate cuts will not be seen for a while.
“Bond yields have been rising over the past month and it is data prints like this that make the risk of inflation spiking again appear more of a reality. The fact is that interest rates are not yet having the complete desired effect of dampening demand and tightening conditions. We are entering a scenario now where the data prints are going to be increasingly volatile and the soft landing the Federal Reserve wishes for becomes harder to achieve.”
