Fed Chairman Powell will deliver an important speech next week, and the market is paying attention to the impact of non-agricultural data on expectat

On November 30th Federal Reserve Chairman Powell will be interviewed at the DealBook/Summit conference by the New York Times on December 5th. The market is closely watching his comments on the pace of interest rate cuts.

Previously, the minutes of the November monetary policy meeting of the Federal Reserve showed that decision-makers generally support a cautious approach to future interest rate cuts. Federal funds futures show that the market expects interest rates to drop from the current 4.5% to 4.75% by the end of 2024 to 3.8%, an increase of more than 100 basis points from September expectations.

US stocks performed strongly this week, with the S&P index recording its largest monthly gain since November 2023. LSEG Lipper data shows that global equity funds received inflows for the ninth consecutive week, with inflows of $12.19 billion this week, a 32% increase from the previous week. Sameer Samana, senior strategist at Wells Fargo Investment Research, said the Federal Reserve has begun to question how much loose policy the economy and labor market need.

The market will focus on the upcoming non-farm employment data, and strong employment data may further weaken market expectations for a Fed rate cut. In addition, October job vacancy data and the November ADP employment report will also provide important references for judging the state of the US labor market.