Opinion: Recent US employment data is "worrying," giving the Federal Reserve reason to implement "insurance-like" rate cuts next year

BlockBeats News, December 18 — According to UBS analysis, the employment data released this week reveals potential weakness in the US labor market, which could serve as a basis for the Federal Reserve to cut interest rates further in early next year. UBS Chief Economist Paul Donovan pointed out in a client report that these data “sound multiple alarms.” Due to the government shutdown exacerbating the low response rate in the Bureau of Labor Statistics survey, the quality of the data itself should be approached with caution. Elyse Ausenbaugh, Head of Investment Strategy at Morgan Wealth Management, agreed that October’s data is especially “concerning.” She stated that this report reinforces the market’s view of the Federal Reserve’s current policy path. The “insurance” rate cuts over the past few months were cautious measures, bringing interest rates back to more neutral levels. She believes that a rate cut again in the first quarter of 2026 might be appropriate, but the economy is currently stable, and the Federal Reserve is patient in observing subsequent actions. (Jin10)