CoinVoice has learned that, according to UBS analysis, the employment data released this week reveals potential weakness in the U.S. labor market, which may serve as a basis for further rate cuts by the Federal Reserve early next year. UBS Chief Economist Paul Donovan pointed out in a report to clients that this data 'rings multiple alarm bells.' Due to the government shutdown exacerbating the low response rate of the Bureau of Labor Statistics survey, the quality of the data itself must be treated with caution.
Morgan Wealth Management Investment Strategy Chief Elyse Ausenbaugh agrees that the data from October is particularly 'alarming.' She stated that the report reinforces the market's view of the current path of the Federal Reserve's policy. The 'insurance-style' rate cuts over the past few months have been a prudent move, bringing rates back to a more neutral level. She believes that a rate cut in the first quarter of 2026 may be appropriate, but the economy is currently stable, and the Federal Reserve is patient in observing subsequent actions. (Golden Ten) [Original link]
