Analyst: If employment data worsens, there are reasonable concerns about whether the Federal Reserve will cut interest rates again at the beginning of the new year

ChainCatcher message, financial website Forexlive analyst Justin Low: The trend in the U.S. labor market is clear; after a strong rebound following the COVID-19 pandemic, it has been softening. The U.S. economy has remained quite resilient, and the labor market has proven this—despite the slowdown. As the Federal Reserve seeks to pause the interest rate cut cycle, this will be a key area to watch in the coming months.

If the labor market conditions align with inflation data, it will validate the Fed's outlook of remaining cautious while waiting for the effects of Trump's policies to take hold. However, if the data worsens, there will be reason to worry about whether the Fed will cut rates again at the beginning of the new year. Before the weekend arrives, price fluctuations (if any) will determine broader market sentiment. (Jin Ten)