Bloomberg Daybreak: Asia Edition US Jobs Report Buoys Sentiment; Treasury Secretary Scott Bessent
Jul 4, 2025
Rob Haworth, a Senior VP at U.S. Bank Asset Management Group, and former Treasury Secretary Scott Bessent join to discuss the effects of recent strong US jobs data. They reveal how this data is boosting market sentiment and raising expectations for the Federal Reserve's policy moves. The duo also dives into the implications of tax legislation and the interplay between tariffs and currency dynamics, while highlighting the pressure on the Federal Reserve amid evolving economic conditions. Their insights spark a lively discussion on market optimism and investment strategies.
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Strong Jobs Signal Economic Resilience
- The June jobs report showed stronger-than-expected employment growth, indicating a resilient US economy.
- This strength reduced market fears of a slowing economy and pressured speculation away from imminent Fed rate cuts.
Fed Rate Cuts Delayed to September
- The Federal Reserve is likely to delay rate cuts until later in the year, possibly September.
- Economic impact of the new tax bill likely won't show until late this year or early next, allowing room for Fed rate adjustments.
Markets Watch Deficit Impact
- The $3.4 trillion deficit increase from the tax bill is being watched closely by markets.
- The bond market seems unconcerned currently, with the 10-year Treasury yield below 4.5%.