Canadian Imperial Bank of Commerce: Weakening U.S. employment data may prompt the Federal Reserve to cut rates earlier

ChainCatcher news, according to Golden Ten Data, the Canadian Imperial Bank of Commerce pointed out that the non-farm employment data reflects a further weakening of the U.S. labor market, while consumer resilience indicates that demand conditions remain favorable. This may prompt Federal Reserve policymakers to reassess their stance and increase the likelihood of an early rate cut in 2026. Although Goolsbee and Schmid were the main dissenters last week calling for rates to remain unchanged, next year they will step down from the FOMC voting seats and may be replaced by the more hawkish Harker and Logan. The cooling labor market will weaken their resolve and increase the possibility of the Federal Reserve easing monetary policy earlier.