I noticed market futures turned south on that news. They are still
Nominally up, but I’m guessing they didn’t like this news - yesterday, pundits were predicting anything equal to or above 250k would be viewed as too hot.
I think odds of any rate cuts this year are declining precipitously. In part because it doesn’t seem to be needed. The economy continues to hum at these fed fund levels. Thing I’m starting to wonder - paradoxically, would smallish rate cuts help inflation now? Goods inflation seems to have finished its moderating cycle. Services and shelter are the stubborn elements. Service economy indicators have turned south a little, so some optimism on prices there. Elevated mortgage rates are muting housing inventory, which plays into rents as well. So, would a marginal decline in rates increase activity and perhaps help moderate costs? Without reigniting inflation elsewhere?
This is the tough part for the fed. [Post edited by hoolstoptheheels at 04/05/2024 08:52AM]
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In response to this post by WaxHoo)
Posted: 04/05/2024 at 08:49AM