Why the Fed Might Not Be Swayed by a ‘Cooling’ Labor Market

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by bitkogan

In a classic case of “bad news is good news” sentiment, the stock market seems to be embracing the notion that a cooling labor market could trigger interest rate cuts.

However, the Federal Reserve has made it clear they’re data-dependent. As such, the Fed has not committed to implementing rate cuts that are based solely on a tepid labor market. Despite the drop in U.S. job openings to 8.83 million, that market is still far from frigid.

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Given the numbers, the Fed will require more compelling evidence before it takes action. If that data doesn’t materialize by Friday, the market could be in for a rude awakening.

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