Opinion

Labour market data tells Fed to keep hiking but remain gradual

By Bevan Graham
Managing Director and Chief Economist, AMP Capital New Zealand New Zealand

The February US labour market data supports the story that the FOMC is not behind the curve and that increase in wages and inflation will likely remain gradual.  The strong jobs growth will give them confidence to hike another 0.25% next week and reassert the gradual rate hiking path ahead.  In terms of the dots that means a likely consolidation around three hikes this year with possibly some starting to drift up to four.

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Important notes

This blog post has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.

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