The recovery of the job market in the latest U.S. employment report doesn't unequivocally point to rate cuts, according to Federal Reserve officials. San Francisco Federal Reserve Bank President Mary Daly noted at an economic forum that the labor market was in a good place, but did not suggest if a rate cut would be imminent. Daly stated, "Jobs are expanding, there’s about one vacancy for every unemployed worker. That's a balanced labor market. That's a good thing.”
Chicago Federal Reserve Bank President Austan Goolsbee shared a similar outlook. While he found the report showing 227,000 jobs added in November promising, he underscored the importance of contextualizing these figures. He also did not specify whether the Fed should cut rates at its next meeting but projected that rates might possibly be "a fair bit lower" in the future.
Even though the labor market is a crucial determinant for the Fed in setting interest rates, Cleveland Federal Reserve Bank President Beth Hammack believes, with a robust economy, there may not be much wiggle room for rate reductions in December. She expressed, “As I take into account strong economic growth, the low unemployment rate, still-elevated inflation, and signals from financial markets, among other factors, my overall view is that monetary policy is only somewhat restrictive today.”
Federal Reserve officials are scheduled to commence their blackout period from public commentaries before the Dec. 17-18 Federal Open Market Committee (FOMC) meeting this Friday.