Fed considering easing monetary policy and rate cuts due to hiring slowdown
Private payrolls increased by 152,000 last month, lower than expected 175,000
Treasury yields have edged lower as market expects rate cuts in November and December
US labor market showing signs of slowing down
In a significant development for the global economy, recent data indicates that the US labor market is showing signs of slowing down, allowing the Federal Reserve to consider easing its monetary policy. According to the ADP Research Institute, private payrolls increased by 152,000 last month, which is lower than the expected 175,000. This hiring slowdown has eased pressure on the Fed to maintain high interest rates and has led to expectations of a first rate cut in November and possibly another in December. Treasury yields have also edged lower as swap contracts indicate market expectations for these rate cuts. The Canadian dollar, meanwhile, fell after the central bank cut interest rates. This cooling of the US labor market is a significant factor that could influence the Federal Reserve's future decisions regarding monetary policy and interest rates.
Investors hope for Fed rate cuts based on weak labor market data
Private payrolls grew by 152,000 jobs in May, below the expected 175,000
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The article contains some instances of inflammatory rhetoric and appeals to authority, but no formal or blatant logical fallacies were found. The authors provide analysis on the labor market data and its potential implications for interest rates without making any false or misleading statements.
][The latest labor market data] sent the benchmark 10-year Treasury yield sliding to 4.31%, down from 4.62% last week.[/
UBS Global Wealth Management chief investment officer Solita Marcelli wrote in a note on Wednesday.
Services PMI hit a 12-month high of 54.8 in May, meeting consensus estimates and reaching the highest level in a year.
About 65% of traders now expect the Federal Reserve to reduce the benchmark rate at their September meeting, compared with less than 50% a week ago.
Hewlett Packard Enterprise (HPE) shares rose as much as 15% after posting a revenue beat and announcing strong demand for AI-focused servers.
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Accuracy
About 65% of traders now expect the Federal Reserve to reduce the benchmark rate at their September meeting
Hiring slowed down with job openings and labor turnover data showing 8.059 million vacancies in April, the lowest level in more than three years
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The author makes several appeals to authority in the article. She references data from various sources such as job openings falling to a three-year low and the CME FedWatch tool. While these sources may be reliable, simply citing them without providing any context or analysis does not make for a strong argument and can be considered an appeal to authority fallacy. Additionally, the author uses inflammatory rhetoric when describing the potential implications of labor market data, such as 'cracks in the labor market' and 'signs of a broader slowdown.' This type of language is intended to evoke an emotional response from readers and can be considered a fallacy. Lastly, there are several instances where the author makes assumptions about the intentions or motivations of various entities without providing any evidence to support those assumptions. For example, she states that 'hopes for a Fed shift appear to be growing' and 'the opportunity in front of this industry and the opportunity in front of Lam specifically is amazing.' These statements are not based on any facts or data presented in the article and can be considered speculative.
][author] Stocks pop at the open US stocks popped on Wednesday, buoyed by tentative optimism for interest-rate cuts amid signs of slowing labor demand and a cooling economy.[//
