Institution: The U.S. labor market shows resilience, and the expectation for a rate cut in December may be repriced

ChainCatcher news, Investors Edge Market and Research Director John Choong stated that after the release of the non-farm payroll report in November, the market predicts a greater than 90% chance of the Federal Reserve cutting interest rates this month, which has exceeded market expectations. Traders seem to focus on the fact that while the U.S. job market shows no signs of cooling, it also shows no signs of heating up. However, Choong's interpretation of the data is different.

He believes that the non-farm payroll data for November indicates that last month's weakness was merely a temporary phenomenon caused by the hurricane, and the U.S. labor market is resilient. The Federal Reserve needs to carefully "thread the needle," as they cannot cut rates too early if inflation remains high. He expects rate cut expectations to be repriced, "because today's strong data challenges the view of a rate cut in December."