According to Odaily, Jeffrey Rosenkranz, portfolio manager of the Shelton Tactical Credit Fund under Shelton Capital Management, commented on the October employment report released last Friday. He noted that the report helps counter concerns that the Federal Reserve's aggressive rate cut in September might have been premature. Despite this, Rosenkranz remains skeptical about the likelihood of two additional 25 basis point rate cuts before the end of the year, even though interest rate futures traders have started to anticipate such outcomes.
Rosenkranz highlighted that while Federal Reserve Chair Jerome Powell is almost certain to face questions regarding the upcoming election and the impact of rising U.S. Treasury yields on their decision-making, he expects Powell to likely express dissent on these matters. This perspective underscores the ongoing debate among financial experts about the Fed's future monetary policy actions and their implications for the broader economy. The employment report, therefore, plays a crucial role in shaping expectations and guiding discussions around potential rate adjustments.