The latest US jobs report has indicated a surge in payrolls, with revisions showing a higher than expected average monthly increase of 27,000 in the second half of 2023. Bloomberg Economics had predicted a slower pace of hiring in 2023, but the actual data has prompted a strong reaction from Wall Street, describing the report as 'too hot'. This has led to a shift in market expectations, with a March rate cut by the Federal Reserve now seen as unlikely. BMO senior economist Jennifer Lee commented on the improbability of a rate cut, reinforcing that Fed Chair Powell's dismissal of a March rate cut was appropriate given the robust jobs data. Meanwhile, stock futures turned lower following the report's release.
Interesting how the direction of revisions got generally better throughout the year, with the most aggressive changes in the early part of the year, before reversing by the end. https://t.co/ePxBQO4YAM
"I'm sure [Fed Chair Powell's] very glad that he dismissed that possibility of a March rate cut because that's definitely not happening," BMO senior economist Jennifer Lee says on the January jobs report. https://t.co/yYnx5blSh4
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‘Too hot’ is Wall Street's knee-jerk reaction to January jobs report https://t.co/MsWBm6pZxL
MarketWatch Live: Stock futures turn lower after jump in U.S. nonfarm payrolls https://t.co/wzoDMCo2js
The revisions argument just took a major hit in this jobs report, with US payrolls revised higher by an average 27,000 per month in the second-half of 2023. https://t.co/aQjbA8TB4B
March rate cut chances after payrolls surge https://t.co/oqbAJLw4nI
A monthly US jobs report due Feb. 2 will probably show a slower pace of hiring in 2023 following annual revisions, according to Bloomberg Economics https://t.co/fyrbW0dGu3