Market Analysis: Revised Employment Data Supports a 25 Basis Point Fed Rate Cut, But Data Does Not Reflect the Full Picture of the Economy

Jinse Finance reported that Paul Nolte, Senior Wealth Advisor and Market Strategist at Chicago's Murphy & Sylvest, stated that there is no doubt the Federal Reserve is ready to cut interest rates based on weak employment data—as well as the overall employment situation. This will not prevent the Fed from deciding to cut rates by 25 basis points. The downward revision of the non-farm payroll benchmark data slightly exceeded expectations. We are currently unable to judge the specific situation on a month-to-month basis, nor can we be completely certain in the coming months, but this does indicate that the labor market is indeed weak. However, this contrasts with the weekly initial jobless claims data, which is basically consistent with the levels seen during periods of moderate economic growth. Moreover, our consumer spending situation remains quite good. So I think this is just one piece of the economic puzzle and cannot fully reflect the overall operation of the economy.