According to Seema Shah, Chief Global Strategist at Principal Asset Management, the possibility of a Federal Reserve interest rate cut in January has essentially disappeared following the unexpected drop in the U.S. unemployment rate in December. She added that it remains difficult to assert that the labor market is collapsing and in urgent need of monetary policy support. She stated that, given the three-month moving average of employment growth is currently in negative territory, the U.S. economy might eventually require additional support from the Fed, just not immediately.
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