Citibank analysts believe the Federal Reserve is still on track to cut interest rates in June, despite recent talk suggesting the central bank may delay it.
In a research note on Friday, the bank, in reaction to the latest non-farm payrolls data, said the latest strong jobs report leaves labor market data in place.
The memo pointed out that employment in institutions appears strong, while the household survey and many other signs show weakness, indicating that the employment rate increased in the household survey by 498 thousand jobs on a monthly basis, but it remains low over the past four months, with a decline in the unemployment rate. Slightly at 3.83 percent compared to 3.86 percent in the previous month.
She explained that the new jobs report in America during the month of March, which indicated that the number of jobs amounted to about 303 thousand jobs, was much higher than the Citi report at 150 thousand jobs and the consensus at 214 thousand jobs, which leaves the three-month moving average at 276 thousand jobs.
Citibank explains that with Fed officials viewing the strong jobs data as good news on the supply side, the Fed is still on track to start cuts in June, and if activity continues, the Fed is likely to cut 75 basis points this year.
2024-04-07 18:47:45
#Citibank #Federal #Reserve #cut #interest #rates #June #CNN #Economics
