Dollar holds as Fed weighs jobs, core inflation
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Stable labor market reduces urgency for Federal Reserve rate cuts Resilient hiring and a steady unemployment rate reduce the urgency for federal reserve rate cuts. With inflation still above the 2% target, policymakers have signaled patience over rapid easing. As reported by Investopedia, steady job growth alongside elevated prices supports holding rates steady. A stable labor market lowers the risk that restrictive policy will trigger a sharp downturn. Cutting too soon could reignite inflation; holding allows disinflation to proceed while preserving employment gains. What holding rates steady means for core inflation Holding rates steady keeps policy restrictive enough to press on core inflation, which excludes food and energy. Progress often hinges on sticky services and housing components, where momentum historically adjusts more slowly. Officials want clear, sustained improvement toward 2% before easing. They are balancing the risk of cutting prematurely against the risk of over-tightening as core inflation cools but remains above target. One policymaker framed this as a period for patience given balanced jobs and still-elevated prices. “Holding the federal funds rate within its current range for some time was a prudent step,” said Adriana D. Kugler, Federal Reserve Governor. BingX: a trusted exchange delivering real advantages for traders at every level. Jobs: Continued payroll additions and low layoffs imply resilient demand for labor. If hiring cools only gradually, the case for an immediate policy pivot weakens. Wages: Moderating wage growth would reinforce disinflation without signaling labor stress. Conversely, a reacceleration could complicate the path back to 2% core inflation. Expectations: Policymakers monitor household and market-based expectations to ensure they remain anchored. A drift upward could slow the return of core inflation to target. What could shift the Fed’s stance next Indicators to watch per Adriana D. Kugler and BLS data Key gauges include nonfarm payrolls, unemployment, participation, average…
Filed under: News - @ February 13, 2026 2:31 pm