Traders Hold Rate Bets Steady After Jobs Data -- WSJ

The Wall Street Journal · 01/06/2023 08:51

-- Futures bets show the federal-funds rate reaching 5% by May and ending the year around 4.75%.

By Eric Wallerstein

Friday's jobs report (https://www.wsj.com/articles/december-jobs-report-unemployment-rate-economy-growth-2022-11672961227?mod=economyleadstory) showed a strong labor market, but also slower wage growth than expected. Traders largely left their bets on where the Federal Reserve will take interest rates unchanged.

The Fed's latest economic forecast showed officials expect rates to reach 5.1%](https://www.wsj.com/articles/fed-raises-rate-by-0-5-percentage-point-signals-more-increases-likely-11671044561) while Chairman Jerome Powell has dismissed any notion of rate cuts this year. Reasserting the central bank's aggressive posture, a Fed official suggested it may be necessary to raise rates as [high as 5.4% (https://www.wsj.com/articles/feds-kashkari-sees-rates-rising-to-5-4-11672840931).

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(END) Dow Jones Newswires

January 06, 2023 08:51 ET (13:51 GMT)