Rate Requiem

With December job creation at a solid 216,000, unemployment unchanged at a low 3.7%, the labor force participation rate sinking to 62.5% from 62.8%, December wage growth up a disappointingly strong 0.44% and Y-o-Y growth too strong at 4.1%, this Fed will remain reluctant to cut rates before May or more likely June. Only recession signs on the horizon or drastically weakening inflationary pressures would cause a speedup.