Forecast-Beating Jobs Report Boosts Investor Bets on Bigger Fed Rate Hikes
Friday’s stronger-than-expected jobs report bolstered investor bets that the Federal Reserve would tighten monetary settings more aggressively to quash inflation by delivering a bigger rate hike at its next meeting and taking rates higher overall before hitting pause.
Government data released on Dec. 2 showed that the U.S. economy added 263,000 new jobs in November, compared to market forecasts of 200,000.
The upside surprise drove investors to revise their expectations for the Fed’s policy path on interest rates, which the central bank has raised in recent months at its fastest pace since the 1980s.
“The better-than-expected jobs report is good news for the American worker, and bad news, at least short term, for risk assets as it supports a hawkish monetary policy by the U.S. Federal Reserve,” said Tim Holland, chief investment officer at Orion Advisor Solutions in Omaha, Nebraska….