U.S. stocks DJIASPX experienced a positive market reaction on Friday, spurred by hopes of a slowdown in rate hikes. This sentiment was mirrored in the bond market, with the 10-year Treasury yield BX:TMUBMUSD10Y falling.
These market movements came following comments from Richmond Federal Reserve President Tom Barkin, who is also an incoming voting member on the Fed's interest-rate committee. In an interview with CNBC, Barkin discussed his interpretation of the October employment report, viewing it as a gradual step-down in job growth. This perspective aligns with those opposing further rate hikes.
Barkin refrained from making predictions about potential changes to the policy rate at the central bank's December meeting. Instead, he highlighted a discrepancy between data and feedback from his contacts within businesses. He noted that while some remain confident in their pricing power, others are exercising caution.
Furthermore, Barkin expressed uncertainty over the robustness of consumer spending as indicated by September's retail sales increase of 0.7%. His focus remains on addressing inflation concerns and he does not foresee immediate interest rate cuts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.