Posted 12/8/2023, 2:57:38 PM
Strong Jobs Data Challenges Forecasts of Slowing Economy, May Push Rate Hikes Later Into 2023
- Analyzing November jobs report, Commonwealth CIO Brad McMillan spots 10-year Treasury yield as key metric to watch
- Yields have climbed on assumptions of imminent rate cuts by Fed and expected economic slowdowns
- Stronger hiring data challenges that narrative, signals economic acceleration rather than slowdown
- Consequently, McMillan expects Treasury yields will face upward pressure after pricing in future data
- Report may push potential Fed rate cuts later into 2023 or 2024, though still forecasts soft landing for economy