The translation of the heading is: "Fed considering a course change? Strong labor market profile hinders interest rate cuts.

The recent U.S. labor market statistics could herald the premature end of the Federal Reserve's loose monetary policy in 2024. Renowned market analyst Ed Yardeni sees no reason for further rate cuts due to the robust economic situation. According to the founder of Yardeni Research, the Fed's decision to cut the key interest rates by half a percentage point in September was unnecessary. Such a measure is more appropriate in times of crisis. "The Fed doesn't really need to do anything now," said Yardeni. On Friday, stock prices rose while U.S. Treasury yields and the dollar increased, triggered by the report showing the largest increase in non-farm employment in six months. Unemployment figures also fell, further boosting the stock markets. Larry Summers, former U.S. Treasury Secretary, expressed shortly before that the Fed's interest rate decision last month was a "mistake." In light of this data, economists from Bank of America and JPMorgan Chase have reduced their forecasts for the November rate cut to a quarter percent—a move also aligned with expectations from futures contracts. Nonetheless, a complete pause by the Fed throughout 2024 is considered controversial. Many see the last rate cut as part of a normalization strategy after a period of tight monetary policy. Ian Lyngen from BMO Capital Markets still considers such an option, depending on further labor market and inflation data until the next Fed meeting in November. For some critics, the market may have already priced in too many rate cuts. Yardeni warns that additional monetary easing could pose the risk of an overheated stock market, which could eventually come to an abrupt end. "Further rate cuts increase the likelihood of a scenario like in the 1990s, when the S&P 500 plummeted dramatically," emphasized Yardeni.