Analyst: If employment data worsens, there are reasonable concerns about whether the Fed will cut rates again at the beginning of the new year

According to Deep Tide TechFlow news on January 10, analyst Justin Low from the financial website Forexlive stated that the trend in the U.S. job market is clear; after a strong rebound following the COVID-19 pandemic, it has been softening. The U.S. economy has remained quite resilient, and the labor market has proven this—despite the slowdown. As the Fed seeks to pause the interest rate cut cycle, this will be a key area to watch in the coming months.

If the labor market conditions are consistent with inflation data, it will prove that the Fed's outlook of waiting for Trump's policies to take effect while remaining cautious is correct. However, if the data worsens, there will be reason to worry about whether the Fed will cut interest rates again at the beginning of the new year. Before the weekend arrives, price fluctuations (if any) will determine broader market sentiment.