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Analysis: Weakening US Employment Data May Prompt the Federal Reserve to Cut Rates Earlier Next Year 2025-12-17 05:42 BlockBeats news, December 17, the Canadian Imperial Bank of Commerce pointed out that non-farm payroll data reflects a further weakening of the US labor market. On the other hand, more resilient consumption indicates that demand conditions remain quite favorable. Overall, this may prompt Federal Reserve policymakers who dissented at the last meeting to reassess their positions, increasing the likelihood of an early rate cut in 2026. That said, Goolsbee and Schmid were the two main dissenters who advocated keeping rates unchanged last week, but next year they will step down from their voting seats, likely to be replaced by Harker and Logan, who may be more hawkish. Therefore, changing their minds and making them more determined to cut rates will be a challenging task. However, a cooling labor market will continue to weaken their resolve, as the balance of data evidence undermines the Federal Reserve's rationale for maintaining current rates. As a result, the likelihood of the Federal Reserve easing monetary policy earlier in 2026 is increasing. (Golden Ten Data) Report Correction/Report This platform has now fully integrated the Farcaster protocol. If you already have a Farcaster account, you can log in to post comments

ChainCatcher news, according to Golden Ten Data, the Canadian Imperial Bank of Commerce pointed out that the non-farm employment data reflects a further weakening of the U.S. labor market, while consumer resilience indicates that demand conditions remain favorable. This may prompt Federal Reserve policymakers to reassess their stance and increase the likelihood of an early rate cut in 2026. Although Goolsbee and Schmid were the main dissenters last week calling for rates to remain unchanged, next year they will step down from the FOMC voting seats and may be replaced by the more hawkish Harker and Logan. The cooling labor market will weaken their resolve and increase the possibility of the Federal Reserve easing monetary policy earlier.