Following the arrival of employment data today, the stock market opened with an increase, but BTC is falling again. In cryptocurrencies This is not surprising, as every rise is seen as a selling opportunity for short-term investors. So, what are Fed members saying after today’s employment figures?
Fed Statements
employment The figures tell us that we have reached the highest unemployment rate since October 2021. This should be of interest to Fed members, and we’ll be following their comments especially closely as the December meeting approaches. Although the employment figure slightly increases the possibility of interest rate cuts, the wage increase we mentioned in the last-minute announcement shows that the demand for labor may have revived again.
As a matter of fact, Morgan Stanley’s Michael Gapen says that stronger employment data reduces the risk of unemployment increase. The bank is now in December Fed’s interest rate cut doesn’t expect it to go away and is currently planning three months in January, April and June next year. interest rate reduction predicts.
Fed member Hammack said:
“Discounts could also encourage risk-taking in the financial market. Interest rate cuts could lead to a prolongation of high inflation. Financial conditions are currently “fairly favorable.” Stablecoins and private loans are worth watching.”
I see high levels of leverage in hedge funds and life insurance companies. Employment data revealed the challenges facing monetary policy.
High inflation is still a real problem for the economy. I attend all Fed meetings with an open mind. The Fed must balance both aspects of its mandate. We need to keep monetary policy somewhat restrictive because of inflation.
I was expecting a cooling in employment, and the data bears that out. I expect fluctuations in the money markets. “We are right around the neutral interest rate.”
Will there be an interest rate reduction?
Hammack is a member of the Fed but does not vote at the meeting. Fed member Barr raised his hand in favor of a rate cut at the last meeting. Cook, who also voted, was making statements as the article was being prepared. BTC At the time of writing, it fell below 90 thousand dollars again and the US Department of Commerce announced a few minutes ago that its report would not be published on November 26. Postponement of data scares investors.
Barr said;
“AI is delivering significant gains in GDP. It is not yet translating into productivity gains. AI is having a positive impact overall, but there may be some disruptions in the short term.”
It concerns me that inflation is still at 3%. We need to support the labor market, but get inflation back to 2%. “We must be careful in monetary policy to balance the risks.”
Barr’s stance on the December rate cut is negative, and that’s bad. Because Cook was trying to be forcibly dismissed by Trump just in the past weeks, and Powell is taking a hawkish stance. So those who want a discount are in the minority. Cook said the following at the time the article was being prepared;
“The US financial system is resilient. While it says it does not pose a risk to the financial system, I see the possibility of large declines in asset prices increasing. I don’t think private loans are a threat to financial stability right now, but it’s worth keeping a close eye on them.”
Hedge funds’ trading strategies in Treasury bonds pose a potential risk to market liquidity. “The use of productive artificial intelligence in trading raises concerns, it may also have benefits, we should follow it carefully.”
BTC price dropped to 89 thousand dollars just at the end of the article.
