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Federal Reserve's Harker: May Temporarily Hold Rates Steady

2025.02.08 00:32:20

February 8th: On this day, the US January seasonally adjusted non-farm payrolls reached 143,000. This figure is significantly lower than the market's expected level of 170,000 and hits a new low since October of last year. Federal Reserve's Gullsby provided comments on the macro data, stating, "This is a rather robust non-farm payroll report. It appears that we are on the verge of achieving full employment. Based on recent observations, I am optimistic that tariffs will not ultimately pose a significant obstacle to trade. I am satisfied with the current economic development path. Tariffs may act as a 'wrench' in the supply chain. Wage growth is roughly in line with the 2% inflation level. Long-term market-oriented inflation expectations suggest that the market believes the Fed will be able to keep inflation under control at 2%." "Currently, the Federal Reserve is keeping interest rates unchanged. However, in the next 12 to 18 months, interest rates will be slightly lower than the current level. Under greater uncertainty, the pace of interest rate cuts will slow down. In the process of achieving the 2% inflation target, we may temporarily maintain interest rates unchanged. The neutral balance point for interest rates has decreased. Stable interest rates need to be achieved on a 'cautious' timetable. I do not think the Federal Reserve will be involved in any sovereign wealth fund." (Jin Shi)
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