06 February 2023 The Week Ahead: Strong US labour market print complicates interest rate outlook

US: 517K jobs created in January, unemployment falls to 3.4% The FOMC last week downshifted to a 25 bps rate hike, taking the upper bound FFTR to 4.75%. Chair Jerome Powell hinted that the Fed is planning a “couple more” rate hikes in the hiking cycle.

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