Fed Split Over Inflation And Hiring Evens Rate Cut Odds

Benzinga

Fed officials are increasingly split between inflation worries and weakening hiring, leaving the December rate decision at effectively 50-50. Missing data from the shutdown has deepened uncertainty, and Thursday’s jobs report will be pivotal as markets brace for possible dissents.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Fed officials are split between concerns over persistent inflation and weak hiring,

00:07turning next month's once-expected rate cut into a 50-to-50 decision, according to the Associated Press.

00:13Recent speeches show Fed officials divided between worries over persistent inflation

00:17and fears that weak hiring could tip the job market toward broader layoffs.

00:22The lack of fresh government data after the shutdown has compounded uncertainty,

00:26and new jobs numbers arriving Thursday will heavily influence the December meeting.

00:30Analysts said an unusually high number of dissents are possible, whether the Fed cuts or holds.

00:36Market odds for a December cut have fallen from nearly 94% a month ago to even odds this week,

00:41contributing to stock market declines.

00:43For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended