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Fed's Path to More Rate Cuts Challenged by Jobs Surprise

Unexpectedly strong employment data for January reduces the chances the Federal Reserve will see a need to cut interest rates again by midyear as the most concerning possibilities for the trajectory of the labor market seem more remote. Worries about rising unemployment that prompted three rate cuts at the end of 2025, before a pause in January, were likely eased by numbers out Wednesday showing 130,000 jobs were added last month, and unemployment fell to 4.3%. Former Treasury official Kitty Richards joins Balance of Power to discuss saying the very anemic job growth last year in the US matches the low expectations workers have been expressing in surveys about the labor market. (Source: Bloomberg)