Fed rate cuts are already over - Shifts focus to hike

[Hitman]

That bearish view came in a note on Friday, after the Labor Department reported that payrolls grew by 256,000 last month, up from 212,000 in November and well above the forecast for 155,000. The unemployment rate dipped to 4.1% from 4.2%, also beating expectations.

"Given a resilient labor market, we now think the Fed cutting cycle is over," BofA predicted. "Inflation is stuck above target and risks are skewed to the upside. Economic activity is robust. We see little reason for additional easing."

In fact, not only are rate cuts finished, BofA added that the "conversation should move to hikes," which could be in play if the core personal consumption expenditure inflation reading exceeds a 3% annual rate and long-run inflation expectations start to move higher.

That's marks a sharp reversal from September, when the Fed cut rates for the first time since 2020, kicking off what was thought to be an easing cycle that would extend well into 2025.

[ManOffSteel]

November December holiday time lo stores lo and travel areas like airlines, hotels lo hiring anedi common.. Oka Jan end Feb ki mottam challa badtadi and market is not as strong as every one thinks.. Hiring is mostly at the lower end like construction workers, restaurant workers etc.. White collar hiring is very low.. One month jobs report bad vaste malli rate cuts antaaru.. My expection is at least a 2 25bps rate cuts this year..Rate will be less than 6% by end of this year and around 5% by end of 2026..

[ARYA]

thata vachaka cheppamanu ee maata