Institution: Nonfarm payrolls below expectations provide talking points for the Federal Reserve doves, but recent factors may weaken the necessity for rate cuts

According to Odaily, David Rees, Global Head of Economics at Schroders, stated that the non-farm payroll data was significantly below expectations, which will provide grounds for discussion among dovish members within the Federal Reserve. However, at least part of the shortfall was due to strike actions in the healthcare sector, a situation that should be reversed. In addition, despite the weak employment report, we believe that with the continued strong growth of the US economy, sustained growth in labor demand is inevitable. It is still unclear whether Kevin Walsh, who is about to take office as the Federal Reserve Chairman, will change his view that the application of artificial intelligence will greatly enhance US productivity and create room for lowering interest rates. However, any recovery in the job market, as well as inflation risks brought about by events in the Middle East, will weaken the necessity for rate cuts in the short term. (Golden Ten Data)