As a seasoned crypto investor with over a decade of market experience under my belt, I have learned to navigate the turbulent waters of financial markets with a keen eye and steady hand. The recent surge in Bitcoin (BTC) following the US jobs report has piqued my interest, but not enough to jump ship just yet.
The Bitcoin (BTC) price recently experienced a sharp jump higher following the most recent US jobs report that has abated recession fears. The cryptocurrency came close to reacliaming the $57,000.
Last month, the United States experienced a significant increase in employment with approximately 142,000 new jobs added. This figure represents a substantial boost from the 89,000 jobs created in July. Additionally, the unemployment rate decreased to 4.2%, indicating a healthier job market.
Jason Furman, an economics professor at Harvard University, characterized the latest employment report as “encouraging.” He pointed out that the rate of job creation has essentially stayed consistent over the past twelve months. To summarize, this is a solid economy with steady job growth. The labor market is functioning well, and employment among prime-aged workers is increasing, he concluded.
Heather Long, an economic columnist for The Washington Post, has noted that the US job market has significantly slowed down. Nevertheless, she hasn’t dismissed the possibility of the Federal Reserve successfully achieving a controlled decrease in inflation, also known as a “soft landing.” This term typically refers to a situation where the Fed manages to reduce inflation to its target level without triggering an economic recession.
After the publication of the jobs report, there was an increased likelihood (43%) suggested by fed-funds futures of a 0.5 percentage point reduction in interest rates.
Initially, the likelihood of a 0.5 percentage point increase in interest rates by the Federal Reserve this month noticeably increased, as indicated by data from CME Group before and after the release of the jobs report.
— Liz Ann Sonders (@LizAnnSonders) September 6, 2024
According to Nick Timiraos, the chief economic correspondent at The Wall Street Journal, the report didn’t clearly indicate the magnitude of the initial reduction. The data wasn’t strong enough to quell debate about a bigger cut.
According to Furman’s perspective, the Federal Reserve might initiate a quarter-point reduction in interest rates this September. However, he suggests that the Fed should also make it clear that further rate reductions could be on the horizon in the immediate future.
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2024-09-06 17:09