On November 7, the U.S. Federal Reserve decided to lower the benchmark interest rate by 25 basis points to 4.50%—4.75%. This is the Fed's second rate cut of the year.
However, with Trump being re-elected as President of the United States, the Federal Reserve will face more pressure.
Recently, whether it is employment data or inflation data, it seems that the Federal Reserve is not very satisfied—significantly lower than expected non-farm data, rebounding CPI, and core PCE exceeding expectations.
In terms of employment data, the U.S. non-farm payrolls in October plummeted to 12,000, far below expectations, and the non-farm employment numbers for August and September were also revised down, totaling a revision of 112,000 jobs.
In terms of inflation data, the U.S. September CPI rose 2.4% year-on-year, higher than the market expectation of 2.3%; the core CPI year-on-year increase rebounded from 3.2% in August to 3.3%. The Fed's preferred inflation indicator—the core PCE price index rose 2.7% year-on-year, matching the previous value, exceeding the expected 2.6%, and rose 0.3% month-on-month, in line with expectations, marking the highest level since April this year.