In December, the Fed boosted rates from record lows. But investors have largely dismissed the likelihood of a rate hike at the next Fed meeting in March. The January jobs report, with a slowdown in job growth but a pickup in wages, complicates the outlook for the Fed.
“Nobody really knows what to do with this jobs report — and ultimately for the Fed it may not matter because we’ll get another jobs report before the March meeting,” said Megan Greene, chief economist at Manulife Asset Management.