According to Odaily, Pepperstone's senior research strategist Michael Brown has indicated in a recent report that the increase in the U.S. unemployment rate could provide sufficient justification for the Federal Reserve to implement a 25 basis point rate cut next week. In November, the U.S. non-farm payrolls rose to 227,000, surpassing analysts' expectations of 214,000 as surveyed by The Wall Street Journal. However, the unemployment rate increased from 4.1% to 4.2% as reported last Friday.
The report suggests that if Federal Reserve policymakers are concerned about potential inflationary pressures during the early stages of President Trump's term, they might consider skipping a rate hike in January. This decision could be influenced by worries about hindering the decline of inflation or the risks of upward inflationary trends. The Federal Reserve's approach to interest rates remains a critical factor in managing economic stability and addressing employment fluctuations.
