Debt ceiling deal shifts focus to potential rate hikes by Fed
The market responded favorably to the announcement Agreement between President Biden and Chairman McCarthy to raise US debt ceiling and avoid defaults. It could be another eventful week ahead as Congress races to finalize the bill to get it into law by the X-date on June 5th. Investor focus is shifting.
They will mostly be focusing on the new US economic report due out this week. The May 2023 Jobs and Turnover Survey (JOLTS) will be released on Friday, June 2nd. Experts expect 180,000 new jobs to be added in May, according to a Reuters poll. Although less than the previous month’s 253,000, The US labor market will continue to show strong growth.
Adds to Commerce Department’s higher-than-expected GDP and PCE inflation Wall Street is already pricing in another rate hike by the Federal Reserve. According to the CME FedWatch Tool, future traders will: The odds of a 25 basis point rate hike have skyrocketed From just under 26% to over 64%.
