PCE inflation rose by 0.2% in the past month. The U.S. labor market in November added 227,000 jobs, recovering from the prior month's decline due to weather and strikes. Additionally, the unemployment rate edged up to 4.2% because of supply constraints. Total job openings increased to 7.74 million in October, aligning with pre-pandemic levels, indicating a healthy labor market continuing into 2025.
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Rate Reduction? The unemployment rate is currently 4%. Pre-Covid, it was 3.5%. Moreover, eight of 12 sectors have jobless rates above their pre-Covid levels, and two sectors are very close. The labor market has fully reverted. Moreover, Pre-Covid core PCE was 1.65%, two years ago it was 5.07%, last year it was 4.69%, it’s now 2.57%. With inflation rapidly falling, and unemployment steadily rising, the Fed should prepare for a September cut.
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The market now predicts a 78% chance of a Fed rate cut in September, up from 64% last week and 50% a month ago. What's driving this increase? Rising Unemployment: 4.1% (highest since Nov 2021) Slowing Job Growth: 1.7% YoY (lowest since Mar 2021) Slowing Wage Growth: 3.9% YoY (lowest since May 2021) Falling Inflation: Core PCE +2.6% YoY (lowest since Mar 2021) These economic indicators suggest a potential rate cut is on the horizon. Stay tuned for more updates! #FedRateCut #EconomicTrends #MarketUpdate #FinancialNews #Alpharetta #Georgia #GA #Atlanta #TeamSadler #CornerstoneMortgageGroup
July 8
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🔔 Fed Chair Powell: More Data Needed to Cut Rates Here is all you need to know: 1️⃣ Friday's jobs report showed weakness: only 114,000 jobs added in July, downward revisions for earlier months, and softer wage growth (3.6% vs. 3.8% in June). 📉 2️⃣ Unemployment rose to 4.3%, signaling a slowdown in the labor market. Concerns are growing that the Fed is behind schedule on rate cuts. 📊 3️⃣ Despite the weakening labor market, the economy is still growing with a 2.8% annual GDP rise in Q2. 🏦 4️⃣ The FedWatch tool shows a 70%+ chance of a 0.5% rate cut in September. Markets are cautious, but there are emerging opportunities. 📉 5️⃣ Lower rates could boost sectors like real estate and consumer staples. 📈 Source: WSJ
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The market now predicts a 78% chance of a Fed rate cut in September, up from 64% last week and 50% a month ago. What's driving this increase? Rising Unemployment: 4.1% (highest since Nov 2021) Slowing Job Growth: 1.7% YoY (lowest since Mar 2021) Slowing Wage Growth: 3.9% YoY (lowest since May 2021) Falling Inflation: Core PCE +2.6% YoY (lowest since Mar 2021) These economic indicators suggest a potential rate cut is on the horizon. Stay tuned for more updates! #FedRateCut #EconomicTrends #MarketUpdate #FinancialNews #GiuseppeBattaglioli #MyDenverHomeLoanTeam #ZenithHomeLoans #OnTimeUnderBudgetNoSurprises
Rate Cut?
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The market now predicts a 78% chance of a Fed rate cut in September, up from 64% last week and 50% a month ago. What's driving this increase? Rising Unemployment: 4.1% (highest since Nov 2021) Slowing Job Growth: 1.7% YoY (lowest since Mar 2021) Slowing Wage Growth: 3.9% YoY (lowest since May 2021) Falling Inflation: Core PCE +2.6% YoY (lowest since Mar 2021) These economic indicators suggest a potential rate cut is on the horizon. Stay tuned for more updates! #FedRateCut #EconomicTrends #MarketUpdate #FinancialNews #NEOHomeLoans
Rate Cut?
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If you’ve read the latest BLS report you’ll learn that the unemployment rate rose to 4.2%, that’s up by 372k totaling 7.2 million and the stock market is down by 600 points. But according to Washington our economy is booming.
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Elliot Eisenberg - Rate Reduction? The unemployment rate is currently 4%. Pre-Covid, it was 3.5%. Moreover, eight of 12 sectors have jobless rates above their pre-Covid levels, and two sectors are very close. The labor market has fully reverted. Moreover, Pre-Covid core PCE was 1.65%, two years ago it was 5.07%, last year it was 4.69%, it’s now 2.57%. With inflation rapidly falling, and unemployment steadily rising, the Fed should prepare for a September cut.
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🇺🇸 NFP Surprise, Focus Now on Inflation Data While America's monthly job gains fell short of expectations, it doesn't necessarily bring bad news. The number of job additions is still within the previously set range. The unemployment rate also remains in the expected range, between 3.8% - 3.9% But the surprise came from the salary growth figures which showed a greater balance than expected. This may be good news for those worried about inflation. With slower wage growth, inflationary pressures from rising wages may not be as great as feared, which could support riskier assets, at least in the short term. Next Data to Watch : US ISM Services PMI Low numbers or no surprises can strengthen positive risk sentiment ahead of the announcement of the US CPI in two weeks from now. This data will be critical in determining the market's view of inflation conditions and may give the Fed some clues about their next move.
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🫣 ICYMI: The Fed is expected to cut rates later this month. How much? The market is pricing in a 25 bps rate cut with speculation that a 50 bps cut is on the table at some point. The pace and timing of future cuts is still largely unknown but as the Fed shifts focus from inflation to unemployment, you can bet there will be a lot of eyes on the jobs report Friday. Here are some dates to keep in mind for September: 9/4: Job Openings and Labor Turnover Survey (JOLTS) 9/6: Employment Situation 👀 9/11: CPI 9/12: PPI 9/27: PCE
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