What January's hot jobs data could signal for the Fed

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The US economy added 353,000 jobs in January, exceeding expectations of 185,000. Wage growth also rose above expectations, reaching its fastest pace since July 2023. The strong jobs data indicates the continued momentum of the US economy. However, it has sparked concerns about the Federal Reserve's policy path and potential inflationary pressures. The Federal Reserve Chair, Jay Powell, recently mentioned that they were no longer worried about a wage growth spiral, but the current wage growth numbers contradict that statement. The hot job market and wage growth could potentially lead to higher inflation and impact the Fed's decision on interest rates. The timing of a potential rate cut is uncertain, but the market remains optimistic about a rate cut before the end of the first half of the year.

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https://finance.yahoo.com/video/januarys-hot-jobs-data-could-145534433.html