How labor data revisions could shift Fed's policy stance

Stocks (^DJI, ^IXIC, ^GSPC) are gaining momentum as investors anticipate potential Federal Reserve rate cuts come September. LPL Financial Chief Global Strategist Quincy Krosby joins Market Domination to discuss her outlook on Fed policy.
With Federal Reserve Chairman Jerome Powell scheduled to speak on Friday at the Jackson Hole Economic Symposium, Krosby notes, "I'm not sure Jay knows exactly which tone he wants," emphasizing that the market is scrutinizing his every word. "A number of the Fed speakers have been more cautious of late, seeking more confirmation that inflation is coming down at a reasonable pace," Krosby told Yahoo Finance.
She highlights the Fed's focus on the labor market, pointing to an upcoming Wednesday report that will assess the accuracy of payroll data from April 2023 to March 2024. If this report reveals inaccuracies, "Chairman Powell is going to have to up his concern about the labor market," which could influence the Fed's rate cut decision.
"We think that there will be revisions, and the revisions will show that they have not reflected accurately the number of jobs that have been created, but not to the extent the extremists think," Krosby predicts. Regardless, she believes the Fed will need to acknowledge that the notion of a resilient labor market is no longer valid.
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