Wall Street debates over "overheating" versus "cooling down," raising the probability of the Federal Reserve holding rates steady in January.
U.S. labor force data provided Wall Street with ample arguments to support the view that the economy is overheating, or to demonstrate that it is dangerously cooling. December job growth fell short of expectations, and previous historical data were also revised downwards. However, the unemployment rate fell more than expected, and wage growth picked up. According to the CME Group's FedWatch tool, this data prompted investors to increase their bets on the Federal Reserve keeping interest rates unchanged, with the probability rising from 88% to 95%. (Jinshi)