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Stable Job Market Keeps Fed Rate Cuts Uncertain

1/11/2025

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Summary

Story summary

Thomas Barkin, president of the Federal Reserve Bank of Richmond, highlighted employer caution regarding layoffs due to previous labor shortages.
The low layoff rate suggests a stable labor market, even with decreased hiring.
Financial markets are wary of job data's impact on potential Fed interest rate cuts amid ongoing inflation.
Market expectations now indicate a one-in-three chance of no rate cuts in the first half of the year.

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Story summary

Thomas Barkin, president of the Federal Reserve Bank of Richmond, highlighted employer caution regarding layoffs due to previous labor shortages.
The low layoff rate suggests a stable labor market, even with decreased hiring.
Financial markets are wary of job data's impact on potential Fed interest rate cuts amid ongoing inflation.
Market expectations now indicate a one-in-three chance of no rate cuts in the first half of the year.