CICC: Considering the overall economic data, we predict the Federal Reserve will cut interest rates by 25 basis points next week

ChainCatcher news, according to Jinshi reports, a research report from China International Capital Corporation indicates that the U.S. non-farm data for October is weak and below expectations, partly affected by hurricanes and strike events. The hurricane forced a large number of people to evacuate and significantly reduced the response rate of business surveys, leading to a sharp decline in employment in the leisure and hospitality sectors, with a surge in the number of people unable to work due to weather conditions. Strikes have also led to a noticeable shrinkage in manufacturing employment. However, these are temporary disturbances, and their impact may reverse in the coming months. Overall, the U.S. labor market is still gradually cooling down, with no signs of rapid deterioration.

Considering the overall economic data, it is predicted that the Federal Reserve will lower interest rates by 25 basis points next week, with monetary policy continuing to normalize, but the pace of rate cuts will not be as aggressive as the market previously expected.