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Jobs report sparks Fed rate cut doubts, sends Treasury yields soaring

03.04.2026 17:39

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In the latest jobs report, the economic outlook becomes cloudier. The numbers show employment growth of 130,000 jobs and an unemployment rate of 4.3%, which makes it uncertain whether the Federal Reserve will consider cutting interest rates in June 2025. Treasury yields rose sharply to 4.41%, reflecting market volatility and expectations of a cautious monetary policy stance. Traders are watching closely, especially the June 18 sub-market, as they assess the potential impact on inflation and growth.

However, with oil prices still high and Middle Eastern tensions escalating, the Fed faces significant challenges in guiding the economy. The lack of strong trading volume and the presence of a waiting-and-seeing atmosphere suggest a cautious approach. For investors, especially those betting on a rate cut, this data presents a mixed picture. A major positive would be a strong economic signal, such as a significant upswing in employment or a clear dovish signal from the Federal Reserve.

To stay updated, it’s crucial to keep an eye on upcoming Fed meetings and economic data releases. Analysts are monitoring comments from Wall Street experts and shifts in the Treasury yield curve. In the meantime, careful analysis of the upcoming speeches and market reactions will be key to making informed decisions.

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