Fed likely to maintain rates at current restrictive levels instead of hiking rates further – Danske Bank
|Economists at Danske Bank stress that labour markets have proven to be surprisingly resilient to the Fed’s tightening mode.
US labour markets defy slowdown expectations
We still think that the Fed is likely to maintain rates at current restrictive levels instead of hiking rates further, especially considering the recent tightening in financial conditions.
But all else equal, while we have called for the first Fed rate cuts already in Q1 2024, the most recent labour market data unequivocally increases the risk of rates staying high for longer than we have anticipated.
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