Atlanta Fed President says the improvement in jobs could result in higher interest rates

Per Reuters

The Fed previously cut down rates after fear of a recession, which was the main concern of firms and financial analysts. Now, Atlanta Fed President Raphael Bostic said that the improved jobs could increase the possibility of higher interest rates.

This comes at a time when the Nasdaq and the S&P 500 experienced their best January ever since 2001 and 2019, respectively. The positive January was a sight for sore eyes, especially since there was a lot of red activity throughout 2022.

According to the Dow Jones Market Data, Nasdaq reported a 10.7% increase in January, the best it had so far since 2001. This makes January 2023 Nasdaq's best-performing January in 22 years.

The S&P 500, on the other hand, reported a 6.2% gain, with stocks like General Motors rising by 8.4% after announcing its earnings. This was the S&P 500's best-performing January since 2019, four years ago.

Bostic shares that his base case for rates is in line with policymakers' median forecasts at 5.1%, per Bloomberg. This came as 517,000 new jobs were added in January, which resulted in the lowest unemployment in over 50 years.

Unemployment dropped to just 3.4%, the lowest since 1969. Bostic shared that should the economy persist, the Feds would have to do more work.

Bostic: "...I would expect that that would translate into us raising interest rates more than I have projected right now.”

The news comes as US President Joe Biden says that the risk of recession in the United States is very low. Biden also highlighted how progress was being made to bring inflation down.

The US President shared how his plan was coming into effect, with results now showing. This was a statement change compared to what he said in October, noting a recession would be felt, but it would only be "very slight."

See flow at unusualwhales.com/flow.

Other News:

Resources:

Reuters

Bloomberg

Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.