Treasury yields (^FVX, ^TNX, ^TYX) are continuing to rise as the market digests the March Jobs report, which came in well above analyst expectations. MassMutual Portfolio Manager Kelly Kowalsk joined Market Domination to discuss what this means for future Federal Reserve rate cuts.
Kowalsk notes that the jobs report points to growth across both cyclical and non-cyclical sectors. However, she indicates that these strong employment numbers do not create an "urgency for the Fed to begin" cutting interest rates. While the hope for three rate cuts in the latter half of the year may not be "an unfair estimate," Kowalsk cautions that this scenario could very well not materialize.
Kowalsk explains that there is more inflation data to be considered before the Fed’s next moves. However, she suggests the second or third quarter could potentially see the start of Fed rate cuts, "assuming" the data supports such a decision.
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