Red-hot US jobs report slams door on Fed cuts, warns deVere CEO

(MENAFN- Priorconsultancy) A scorching US jobs report has cast serious doubt over the prospect of a September rate cut—and global investors must act now, warns the CEO of one of the world’s largest independent financial advisory and asset management organizations.

Nigel Green, chief executive of deVere Group, is urging investors to urgently reassess their portfolios after the US economy added 206,000 jobs in June, far exceeding expectations and proving that the labor market remains tight despite high interest rates.

“This report changes everything,” says Nigel Green. “The labor market is still running hot. Wage pressures remain. There’s no justification for the Federal Reserve to cut rates in this environment—and the markets are waking up to that fast.”

He continues: “The narrative had shifted toward a September pivot, but those expectations have been ripped apart by this data. The case for a rate cut is evaporating. The Fed has every reason to wait. And it will.”

Treasury yields jumped on the data. The dollar surged. And risk assets, already stretched on assumptions of looser policy, are now vulnerable.

“The dollar’s strength is just beginning,” Nigel Green notes. “Investors holding risk-sensitive positions—especially in emerging markets—must be alert. If you’re not hedging dollar exposure now, you’re already late.”

He adds: “The assumption that central banks will start cutting in sync is looking outdated. The US economy continues to outperform—and that puts the Fed in a very different position to its peers in Europe or the UK.”

Markets had been split on the likelihood of a cut in September, but this report tilts the balance sharply. Unemployment edged up to 4.1%, but average hourly earnings remain elevated, confirming sticky wage inflation.

“This is not what a softening economy looks like. This is strength—and that’s not what the Fed needs to fix,” explains the deVere CEO. “Those still positioned for a dovish turn are ignoring the data. And in this cycle, that’s dangerous.”

He warns that investors must now prepare for higher-for-longer rates and a more volatile second half of the year.

“We’re urging clients to get proactive immediately. Review your exposure to duration, shift into defensive equities, and reprice your currency risk. Don’t wait for the September decision; by then, the markets will have moved.”

Nigel Green also notes that the Fed will not be pressured by the election calendar.

“This isn’t about politics. This is about data—and right now, the Fed has absolutely no need to act. If anything, they’ll be more cautious to avoid overstimulating an economy that’s still running strong.”

He concludes: “Investors cannot rely on outdated assumptions. The path forward has changed. September is no longer a certainty. It’s up in the air—and that uncertainty demands action sooner rather than later.”

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