The Fed raised benchmark interest rates by another 75-bps last week and hinted at smaller increases ahead. Moreover, the October jobs report came in stronger than expected, with nonfarm payrolls growing by 261,000 against the Dow Jones estimate of 205,000. The stock market rejoiced on the release, while Treasury yields also were higher.
On the other hand, despite significant macroeconomic headwinds, President Joe Biden sees “bright spots” where the country is rebounding. “Folks, our economy continues to grow and add jobs even as gasoline prices continue to come down,” he said. Moreover, Goldman Sachs believes the Federal Reserve can still pull off a soft landing for the U.S. economy.
