Analyst: Strong U.S. Employment Shows Economic Resilience, But Fed Faces High Uncertainty
BlockBeats News, February 12, Vontobel analyst Andrew Jackso said that the U.S. job growth in January exceeded expectations, once again confirming the resilience of the economy. However, for policymakers, it did not provide much clearer guidance. Although the current economic situation is more predictable than it was at the beginning of last year, the uncertainty facing the Federal Reserve remains higher than many other central banks. The key conclusion for fixed income investors is: "Credit fundamentals are still sound, macroeconomic conditions are still good, and the U.S. economy has shown considerable resilience." Compared to a year ago, concerns about corporate bond valuations being at a high level are no longer as prominent. "I think credit spreads may remain at their current level, or even narrow slightly further." (FX Street)
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