Fed Silence Leaves Markets Guessing Ahead of Jobs Report

The Federal Reserve under new chair Kevin Warsh has stopped guiding markets on policy direction, leaving investors to navigate uncertainty ahead of Friday's jobs report.

Economists expect a modest 83,000 new jobs and an unchanged unemployment rate of 4.2%, but forecasts have split widely, with Bank of America predicting three quarter-point rises by year-end, while Citigroup sees three cuts.

The lack of clarity from the Fed has led to market repricing, with yields swinging wildly this week, peaking at 5.28% for the 30-year Treasury yield since 2006.

Natixis economist Chris Hodge described the labour market as stable but not hot, while Bank of America's economists argue that rising long-term yields are tightening conditions on the Fed's behalf.