Capital Economics: The non-farm payroll data must be significantly below expectations in order for the Federal Reserve to become more dovish

In a report, Olivia Cross from Capital Economics stated that this week's non-farm employment numbers must show a "significant decline" in order to prompt the Federal Reserve to cut interest rates by 50 basis points again next week. Economists surveyed by The Wall Street Journal predict that due to the impact of hurricanes and strikes, new job growth will slow down from 254,000 in September to 100,000. Cross said that data needs to be much lower than expected for the Fed to become more dovish. On the other hand, Cross believes there is an upward risk of inflation which is another reason for the Fed's caution.