US Eco Data Lowers Rate-Hike Odds; Indonesia Finance Minister Speaks | Bloomberg Daybreak: Asia...

The U.S. labor market's recent weakness, characterized by only 29,000 jobs added and an unemployment rate rising to 4.2%, has significantly lowered the probability of a Federal Reserve rate hike this month to 20%. Despite this, global growth remains resilient, and persistent inflation risks—driven by elevated energy costs and AI-related capital expenditure—necessitate a higher-for-longer interest rate environment. Vanguard’s Qian Wang projects a 3% core PCE inflation rate by year-end, with neutral rates in the U.S. trending toward 3.5%. Meanwhile, Indonesia’s newly appointed Finance Minister, Suahasil Nazara, reaffirms commitment to a 3% fiscal deficit limit. He emphasizes a dual-arm strategy, utilizing both the state budget and the sovereign entity Danantara to drive economic growth and maintain fiscal credibility, ensuring policy continuity for international investors while improving state-owned enterprise efficiency.