.jpg "Another Round of “Hurry Up and Wait” for Bond Investors Photo")
After growing optimism about the timing for Federal Reserve (Fed) rate cuts to begin, bond investors were again disappointed after Friday’s jobs report came in stronger than expected. May payroll growth increased by 272,000, beating all 77 estimates from economists surveyed by Bloomberg.1 Even more troubling for Fed policymakers may have been the uptick in wages in Friday’s employment data.2
Fed policymakers are almost certain to hold interest rates steady during this week’s meeting, but an updated Fed “dot plot” (Fed projections for short-term interest rate levels) is certain to shed more light on the likely path ahead for monetary policy. Wednesday morning’s Consumer Price Index (CPI) report will provide policymakers with another valuable data point before the Fed’s decision is announced that afternoon.3
Sources:
1,2BNN Bloomberg – Here Are the Key Takeaways From US Jobs Report for May; 6/7/24
3MarketWatch – U.S. Economic Calendar; as of 6/10/24
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