Institutions: Weak employment data unlikely to change expectations of a Fed rate cut this year

Carson Group analyst Sonu Varghese said the weak February jobs data is unlikely to change expectations regarding a Federal Reserve rate cut this year. He stated that the report "reminds us that risks in the labor market have not been eliminated." However, on the other hand, "inflation remains high even before the impending energy price shock and AI-related bottlenecks emerge." Varghese expects these two factors to "keep the Fed cautious about rate cuts—a cut is unlikely in the near term." The market currently widely expects only one rate cut this year. (Jinshi)