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If February's nonfarm payrolls data is lackluster, expectations for a Federal Reserve. rate cut will be pushed back to the third quarter.
Svmuu News: Both the U.S. February ADP employment report and the ISM Non-Manufacturing PMI exceeded expectations, indicating that the job market—a key concern for the Federal Reserve—is stabilizing. Additionally, the Federal Reserve has already signaled that it is in no rush to cut interest rates. Coupled with soaring domestic energy prices due to the war,market expectations for the next rate cut have been pushed back to around September. If February’s nonfarm payrolls come in flat or are overshadowed by the war, and given the foreseeable scenario of a rebound in inflation, market expectations for Federal Reserve’s first rate cut are likely to extend into the third quarter.
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