Fed could hold interest rates through December as weak jobs data reshapes outlook: Strategist

• The U.S. economy unexpectedly lost 23,000 jobs in July, with the unemployment rate at 4.1%, slightly changing the narrative for investors.
• Cooler inflation data (PCE, PPI) suggests a probability of under 50% for a September Fed rate hike, making a pause until December seem reasonable.
• The move away from explicit forward guidance by the Fed is seen as positive, leading to more data-driven decisions and potentially beneficial market volatility.
• Despite geopolitical risks from the Middle East and Ukraine, the underlying U.S. economy shows resilience, though inflation is not yet fully contained.

Strategist George Boubouras believes that weaker U.S. jobs data and cooler inflation make a Federal Reserve rate hike in September less likely, with a pause until December appearing reasonable. He also views the Fed's shift away from explicit forward guidance as a positive development, fostering more data-driven policy decisions.