Federal Reserve to Hike Interest Rates Despite Cooler Jobs Report, Warns CEO
Investors around the world are holding their breath for the monthly US jobs report, set to be published on Friday, March 10th at 8:30 a.m. ET by the US Bureau of Labor Statistics. The report is expected to reveal that the US economy added around 225,000 new jobs in February, according to Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations.
Despite the cooler jobs report, Green warns that the Federal Reserve is still likely to hike interest rates further on March 22nd. “This jobs report is being closely watched by investors around the world, after January’s gave analysts a massive surprise. It revealed the US economy had added more than half a million jobs and unemployment had fallen to a level not seen in more than five decades,” he said.
Green’s warning comes as the global and domestic financial markets brace themselves for the impact of the Federal Reserve’s decision. The US central bank has already raised interest rates three times since December 2015, and is expected to continue its tightening cycle in the coming months.
The Federal Reserve’s decision to hike interest rates is based on its assessment of the US economy’s strength and its outlook for inflation. The central bank has been concerned about the potential for inflation to rise above its 2% target, and has been taking steps to prevent this from happening.
Despite the cooler jobs report, Green believes that the US economy is still strong enough to support further interest rate hikes. “The US economy is in a good place right now, with strong growth, low unemployment, and rising wages. This is a positive sign for investors, and we expect to see continued growth in the coming months,” he said.
Investors will be closely watching the Federal Reserve’s decision on March 22nd, as it will have a significant impact on the global financial markets. The decision will also be closely watched by policymakers around the world, as they look to the US for guidance on monetary policy.
