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Surprisingly strong January jobs report boosts odds of Fed half-point rate hike in March
US economy adds 467K jobs in January
The U.S. economy added more jobs than expected in January. Panel of experts weigh in on ‘Mornings with Maria.’
The surprisingly strong January jobs report could force the Federal Reserve to kick off its interest-rate hikes next month with the steepest increase in two decades.
Traders are now pricing in over a 36% chance of a hefty half-point rate jump when policymakers meet next month, instead of a more modest quarter-point increase. It would mark the first time since 2000 that the U.S. central bank raised the federal fund rate by 50 basis points. The Fed has not raised rates since December 2018.
JANUARY JOBS REPORT SHOWS SURPRISINGLY STRONG GAIN OF 467,000, DESPITE OMICRON
"A strong jobs report, along with elevated inflationary economic data that we’ve seen recently, could boost expectations that we’ll see a 50-basis point rate increase at the March meeting," said Brian Price, head of investment management for Commonwealth Financial Network. "I still believe that 25 basis points is the base case at this point, but 50 is not off the table either."