Analysts: The reasons for the Federal Reserve to further cut interest rates still hold

ChainCatcher news, according to Jinshi reports, the U.S. non-farm payrolls for November recorded a growth of 227,000, the largest increase since March 2024, exceeding the expected 200,000, with the previous value revised from 12,000 to 36,000. The U.S. unemployment rate for November was recorded at 4.2%, in line with expectations, with the previous value at 4.10%.

Analysts say that at first glance, this report does not show signs of an economic recession. The job market has not hit rock bottom, but there are indeed signs of a slowdown. Considering the Federal Reserve's benchmark interest rate, with the upper limit of the target range at 4.75%, which is more than a percentage point higher than the core inflation rate, the rationale for further rate cuts still stands.

The non-farm payroll report is one of the last major data points the Federal Reserve will consider before deciding whether to cut rates for the third consecutive time at its December meeting. Federal Reserve Chairman Powell stated this week that the Fed can be "a bit more cautious" on rate cuts, as the U.S. economy is "in very good shape," and inflation levels are slightly higher than previously expected.