A trader reacts as a screen displays the Fed rate announcement on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 31, 2024.
The U.S. stock market is in a "very dangerous" spot as persistently strong jobs numbers and wage growth suggest the Federal Reserve's interest rate hikes have not had the desired effect, according to Cole Smead, CEO of Smead Capital Management.
The figures came after Fed Chair Jerome Powell said the central bank would likely not cut rates in March, as some market participants had anticipated.
"We know the Fed has raised rates, we know that caused a banking run last spring and we know that's damaged the bond market.
The Fed has not affected wage growth, which continues to outpunch inflation as we speak, and I look at the wage growth as a really good picture of inflationary pressures going forward."
Persons:
Cole Smead, Nonfarm payrolls, Dow Jones, Jerome Powell, Smead, CNBC's
Organizations:
New York Stock Exchange, Smead Capital Management, CPI, Wage
Locations:
New York City, U.S