Muddled Jobs Data May Do Little to Alter Immediate Fed Rate Path
Published On Nov 1, 2024, 9:13 AM
Federal Reserve officials are expected to cut interest rates by a quarter point next week, following a disappointing jobs report that showed hiring stalled out in October due to hurricanes affecting some industries and strikes reducing manufacturing jobs. The unemployment rate remained unchanged at 4.1%. Economists believe the Fed is unlikely to make significant policy changes without more data, especially given the uncertainties related to the upcoming U.S. presidential election.
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As the Federal Reserve cuts interest rates, this could lead to increased borrowing and spending in the economy which generally supports stock prices. Financials, particularly banks, may face pressure from lower rates, while sectors reliant on consumer spending could benefit.
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