Market analysis: A weak labor market may lead to further interest rate cuts by the Federal Reserve.
AI Summary1 min read
TL;DR
Analyst Chris Iago notes that despite high inflation, a weakening US labor market, evidenced by stalled job growth, could lead the Federal Reserve to implement further interest rate cuts.
Tags
Federal Reserveinterest rate cutslabor marketinflationnon-farm payroll
On December 20th, Chris Iago, an analyst at AXA Investment Management, pointed out that although inflation is above target, the US labor market is showing signs of weakness, which could very well prompt the Federal Reserve to cut interest rates further. "The delayed release of the October and November US non-farm payroll data confirms what has been obvious this year—job growth has stalled," Iago said. He added that investors need to closely monitor US labor market data for further signs of weakness. (Jinshi)