Blockbuster jobs report to push Fed to hike rates

In the spotlight: Powell speaks in a news conference in Washington. He welcomed recent lower readings on inflation that have brought it down from last year’s peak. — Reuters

WASHINGTON: January’s blockbuster US jobs report is likely to strengthen the Federal Reserve’s (Fed) determination to raise interest rates above 5% and keep them high throughout the year – an outcome investors remain sceptical of.

Fed chair Jerome Powell last Wednesday said policymakers expect to deliver a “couple” more interest-rate increases before putting their aggressive tightening campaign on hold, though he didn’t push back strongly against markets pricing just one more hike and cuts by the end of the year.