Opinion: Recent US employment data is "worrying", giving the Federal Reserve reason for a "precautionary" rate cut next year

BlockBeats News, December 18, according to analysis by UBS, employment data released this week reveals potential weakness in the US labor market, which could provide grounds for the Federal Reserve to cut interest rates further early next year. UBS Chief Economist Paul Donovan noted in a report to clients that this data "rings alarm bells in several areas." Due to the government shutdown exacerbating the low response rate to the Bureau of Labor Statistics surveys, the quality of the data itself should be treated with caution.

Elyse Ausenbaugh, Chief Investment Strategist at JPMorgan Wealth Management, agreed that the October data was particularly "concerning." She stated that this report reinforces the market's view of the Federal Reserve's current policy path. The "insurance" rate cuts over the past few months were prudent moves that have brought rates back to a more neutral level. She believes that a further rate cut in the first quarter of 2026 may be appropriate, but for now, the economy remains stable and the Federal Reserve can afford to patiently observe before taking further action. (Golden Ten Data)