Canadian Imperial Bank of Commerce: Weak US employment data may prompt the Federal Reserve to cut interest rates earlier

ChainCatcher reports that, according to Jintiao, the Canadian Imperial Bank of Commerce pointed out that non-farm payroll data reflect a further weakening of the US labor market, while consumer elasticity 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 Schmidt were the main opponents of maintaining interest rates last week, they will step down from the FOMC seats next year, potentially being replaced by more hawkish Hamaak and Logan. The cooling of the labor market will weaken their resolve and increase the possibility of the Fed easing monetary policy earlier.