Capital Economics: Non-farm payrolls need to fall sharply to prompt the Fed to cut interest rates by 50 basis points

According to the report by JinShi Data, Olivia Cross of Kaiwai Macro said in the report that the non-farm payroll number this week must see a "significant decline" for the Fed to cut rates by another 50 basis points next week. Economists surveyed by The Wall Street Journal expect new job creation to slow to 100,000 from 254,000 in September due to the impact of hurricanes and strikes. Cross said the data needs to be much lower than expected to prompt the Fed to be more dovish. On the other hand, Cross believes there are upside risks to inflation, which is another reason for the Fed to act cautiously.