Fed Extended Pause Outlook After Strong US Jobs – UOB

UOB economist Alvin Liew highlighted that the latest US payrolls data came in stronger than anticipated, while oil prices have also risen. These factors have significantly lowered the market's expectation for near-term Federal Reserve rate cuts.

According to Liew, the combination of robust job growth and elevated energy costs points to a more extended pause in the Fed's easing cycle, as policymakers may need to keep rates higher for longer to combat inflationary pressures.