- Weaker labor data has boosted expectations of Fed rate cuts, with Wharton’s Jeremy Siegel predicting three reductions this year. Markets are rallying on the outlook, while Goldman Sachs’ Jan Hatzius warns job growth is fragile but sees a rebound by 2026 as tariffs ease and policy turns supportive.
Recent jobs data did not paint the stable picture of the labor market that the Federal Open Market Committee (FOMC) might have been hoping for. The story will likely be the same for inflation data released later this week.
