Employment Data Shifts Fed Rate Cut Timeline
New analysis from Danske Bank shows that the Federal Reserve's timing for rate cuts has shifted due to stronger-than-expected employment data in January. The report highlights that the labor market has shown more resilience than previously anticipated, reducing the urgency for accommodative measures in the spring.
However, analysts emphasized that this does not rule out rate cuts entirely. They now expect the Fed to act in June and September rather than March and June, as previously predicted.
Outlook for Interest Rate Path
According to the latest forecast, analysts believe the Federal Reserve will stabilize rates at 3.00%-3.25% after implementing two rate cuts this year. They also suggest that this level could remain unchanged from 2026 to 2027 to support long-term economic stability.
- January jobs report exceeded expectations
- Spring rate cut plan is put on hold
- New timing focuses on June and September