CICC: Taking into account the overall economic data, it is predicted that the Federal Reserve will cut interest rates by 25 basis points next week

Odaily Planet Daily Report: According to a research report by China International Capital Corporation (CICC), the U.S. non-farm data in October was weak and fell short of expectations, partly affected by the impact of hurricanes and strikes. Hurricanes forced a large number of people to evacuate, significantly reducing the response rate of corporate surveys, and the employment in the service industry such as leisure and accommodation plummeted, while the number of people unable to go to work due to weather reasons surged. Strikes also led to a significant contraction in manufacturing employment. However, these are temporary disturbances, and their impact may be reversed in the coming months. Overall, the U.S. labor market is still gradually cooling down, and there are no signs of a rapid deterioration. Considering the overall economic data, it is predicted that the Federal Reserve will cut interest rates by 25 basis points next week, and monetary policy will continue to return to normal, but the pace of interest rate cuts will not be as aggressive as the market previously expected. (Jinshi)