Dow Jones futures fell more than 100 points after Minneapolis Federal Reserve President Neil Kashcary urged the Fed to raise interest rates to 5.4%
As of 9:10 pm Thai time, Dow Jones futures fell 101 points, or 0.3%, to 33,833 points.
said Mr Kashcary The Fed still has a lot of work to do in its efforts to stop the rise in inflation. after the US released stronger than expected employment numbers on Friday
“This surprised us. And shows that the Fed’s measures have not yet affected the labor market. I see no tendency to downgrade my interest rate expectations,” Kashcary said.
Mr. Kashcary said that the Fed needs to raise interest rates to 5.4% from the current range of 4.50-4.75%.
According to the US Department of Labor, non-farm payrolls rose by 517,000 in January. which is the highest level since July 2022 And above analysts’ expectations of 187,000 jobs.
The unemployment rate fell to 3.4%, the lowest level since May 1969. And below analysts’ expectations of 3.6% Investors are sticking to Mr Powell’s statement. He is scheduled to speak at a talk hosted by the Economic Club of Washington later tonight to look for some signs of the Fed’s interest rate direction.
Markets are worried that the Fed will raise interest rates longer than expected. And above the 5% level after the US revealed strong employment numbers.
CME Group’s FedWatch Tool notes that investors expect the Fed to raise interest rates twice as much by 25 basis points at its March meeting. and May to the highest level of 5.00-5.25% before the Fed keeps interest rates at that level.
Investors had previously expected the Fed to raise interest rates by 0.25% just one more time at its March meeting. to 4.75%-5.00% before the Fed keeps interest rates at that high level.
Meanwhile, the market will be watching this week’s earnings report from US listed companies, including Disney, DuPont, PepsiCo and Tyson Foods, as well as US economic data including trade balance, weekly jobless claims . and the Consumer Confidence Index from the University of Michigan.