'Fed Will Not Be Cutting In January': Lindsay Rosner

Summary

Lindsay Rosner of Goldman Sachs Asset Management and Blake discuss the December US jobs report and its implications for Fed policy. They agree that the Fed will not cut rates in January, with Blake adding that his firm now expects the Fed to remain on hold for the rest of the year due to a lack of labor market weakness. The conversation highlights a shift away from inflation concerns toward labor market data.

• December nonfarm payrolls rose 50,000 with downward revisions to prior months.
• Lindsay Rosner says the data is clean and makes a January Fed cut unambiguous.
• Rosner states the Fed will not cut in January.
• Blake says inflation data is unlikely to change near-term Fed dynamics.
• Blake notes the Fed has moved away from the inflation side of its mandate.
• Blake's firm changed its Fed call and now expects the Fed on hold for the rest of the year.
• The discussion centers on labor market strength and the unemployment rate.