$BTC $ETH $ZEC Just now, the Federal Reserve has a big news on interest rate cuts!
The U.S. non-farm data is a "roller coaster"! In November, an increase of 64,000 exceeded expectations, but the unemployment rate surprisingly rose to 4.6%
The delayed U.S. non-farm data has finally arrived!
On the evening of December 16, the U.S. Bureau of Labor Statistics (BLS) released a report:
✅ In November, non-farm employment increased by 64,000, exceeding the expected 45,000;
⚠️ However, the unemployment rate unexpectedly rose to 4.6%, higher than the expected 4.5%;
📉 In October, the number of employed was revised down by 105,000, marking the largest decline since the end of 2020.
Why was the October data so poor? The main reason is that federal employees involved in Trump’s government “deferred resignation” plan were officially removed from the payroll list, leading to a sharp decline of 162,000 in government employment.
Although employment in November returned to positive, the labor market is still "bouncing up and down". The unemployment rate continues to rise, indicating increased layoffs and difficulty in finding jobs.
Will this report affect the Federal Reserve's interest rate cuts?
The market seems not to be scared - traders are still betting on two rate cuts in 2026. After the data was released, U.S. stock futures briefly surged, but quickly fell back, with the dollar showing weakness.
Many analysts believe that the job market is experiencing a "moderate cooling": the unemployment rate is rising, growth is slowing, and wage growth is decelerating. But fortunately, there is no "cliff".
Goldman Sachs analysts pointed out that this data was significantly affected by the government shutdown, reducing its reference value: "Powell reminded last week that this report may be distorted." The truly indicative data may have to wait for the December figures released in early January.
Some viewpoints suggest that the Federal Reserve might as well "pause and observe" for a few more months before taking action. Some strategists also predict: "The labor market is cooling enough, and the number of rate cuts next year is likely to be more than what the Federal Reserve is currently indicating."
Summary: Employment has not collapsed, but it is indeed weakening - this gives the Federal Reserve a reason to continue easing.
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