Weekly Economic Update: February 5, 2024
• Yields finished the week mixed with the two-year Treasury note rising by three basis points to 4.37% while the five-year note fell by four basis points to 3.99%.
• The economy added an outsized 353 thousand workers to payrolls in January versus an expected 185 thousand as the labor market built some momentum heading into 2024.
• Wages accelerated with average hourly earnings advancing by 0.6% in January which marked the fasted monthly increase in two years, however it should be noted that January is known for exhibiting more seasonality than other months, even without inclement weather events, as did occur this year.
• Fed Chairman J. Powell conducted a media interview with 60 Minutes over the weekend and echoed the same message he delivered at the conclusion of the FOMC meeting last Wednesday where he pushed back on a March rate cut, reiterating that the committee still sees elevated downside risks of easing prematurely.