Rate Cut Odds Strengthen as Fed Officials Take Note of Sluggish Labor Market

FomoAnxiety · 2026-03-06T20:29:26+00:00

February's jobs report showed a decline in nonfarm payrolls by 92,000 and an increase in unemployment to 4.4%. Fed officials suggest rate cuts may be considered, with expectations of stable interest rates this month, while the likelihood of a rate cut by April has risen.

FomoAnxiety

2026-03-06 20:29:26

Abstract generation in progress

February’s jobs report took many by surprise, including members of the Fed. In February, nonfarm payrolls dropped by 92,000, while the unemployment rate rose to 4.4% from 4.3%. In addition, January’s and December’s nonfarm payrolls were revised lower by 4,000 and 65,000, respectively.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

“The hopes that the labor market was steadying, maybe that was too much, and we really have to keep our eye on the labor market,” Federal Reserve Bank of San Francisco President Mary Daly told _CNBC _on Friday.

Rate Cut Odds Rise as Hammack, Collins Back Steady Rates

Furthermore, Federal Reserve Bank of Cleveland President Beth Hammack said that she sees “two-sided risks to rates,” referencing the central bank’s dual mandate of maximizing employment and keeping inflation near the 2% level.

Still, Hammack, as well as Boston Fed President Susan Collins, voiced their support for keeping interest rates on hold. While the Fed is expected to leave rates unchanged this month, the odds of a 25-bps rate cut at the April 29 Federal Open Market Committee (FOMC) jumped to 19.5% from 11.4% a day ago on the CME FedWatch tool.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.