Friday , 22 November 2024
Home Forex Wharton finance professor says Fed could pause next week if NFP comes in hot
Forex

Wharton finance professor says Fed could pause next week if NFP comes in hot

Wharton finance professor Jeremy Siegel says that the Federal Open Market Committee (FOMC) could leave Fed Funds unchanged (announcement due November 7) if there is a substantial upside surprise to the nonfarm payrol headline on Friday (November 1)

Siegel spoke with CNBC last week:

  • “If we get a strong labor market report for the month of October, there’s going to be a lot of people, a lot of the FOMC members, that are going to say maybe we should pause at this particular juncture,”
  • Siegel sees three to four cuts ahead during the easing cycle
  • rates will probably be elevated in the long run
  • stock market looks strong
  • economy remains resilient

Back in August Siegel called for a 75bp Fed emergency rate cut.

Hmmmm. Well, yes if it comes in hot. Later in the week I’ll pop the range of expectations, this’ll give us an idea of what ‘hot’ would mean.

Expections for the NFP, due at 8.30 am US Eastern time on Friday:

This article was written by Eamonn Sheridan at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

US stocks are mixed in premarket trading

The futures are implying a mixed opening with 30 minutes to go...

ECBs Nagel (Hawk): PMI data confirms that Germany is stagnating

ECB Nagel is on the wires saying"PMI data confirm that Germany is...

ECBs Villeroy: ECB is achieving a soft landing

ECBs Villeroy is weighing in after weaker data today:ECB is achieving a...

Canada retail sales for September 0.4% vs 0.4% estimate

Prior month 0.4%Retail sales for September x.x% vs 0.4% est.Ex Auto 0.9%...