CICC Research Report: Non-farm data supports the Federal Reserve to continue cutting interest rates

The number of new jobs in the US rose sharply to 227,000 in November after being severely hampered by hurricanes and strikes, but the unemployment rate also rose to 4.2 per cent, suggesting the labour market is slowing, according to the China Gold Research Report. Overall, the labour market remains in a state of "weaker job growth momentum, but the job market itself is not weak", which will provide the reason for the Federal Reserve to cut interest rates again in December.
But it also predicts that the Fed will slow the pace of interest rate cuts in 2025, as policymakers also become more cautious as interest rates approach neutral levels. One forecast risk is the impact of Trump's proposed immigration policy on the labor market, which currently tends to be more moderate, but also requires close attention to the possibility of extreme scenarios. Based on non-farm payroll data, the Fed is expected to cut interest rates again this month by 25 basis points.