German Central Cooperative Bank: U.S. economic data does not support a significant rate cut by the Federal Reserve

ChainCatcher news, according to Jinshi reports, Birgit Henseler, an analyst at the German Central Cooperative Bank, stated that there is still a divergence in the money market regarding the Federal Reserve's first rate cut, which is expected to be between 25 basis points and 50 basis points, but there are several reasons indicating that the Federal Reserve should not take significant action.

In a report, she stated, "Neither the labor market data nor the recently released inflation rate shows any signs that a substantial rate cut is necessary." Henseler said that the state of the labor market indicates an economic slowdown rather than a recession, and the core inflation rate has recently proven to be more stubborn than many market participants expected, due to rising housing and other service costs.