Canadian Imperial Bank of Commerce: Weak U.S. employment data may prompt the Federal Reserve to cut interest rates earlier

According to Jinshi News, the Canadian Imperial Bank of Commerce pointed out that the non-farm payroll data reflects a further weakening of the U.S. labor market, while consumption elasticity indicates that demand conditions remain favorable. This may prompt Federal Reserve policymakers to reassess their stance and increase the likelihood of an earlier rate cut in 2026. Although Goolsbee and Schmidt were the main opponents of keeping interest rates unchanged last week, they will be stepping down from the committee next year, potentially replaced by more hawkish members like Hamack and Logan. The cooling of the labor market will weaken their resolve and increase the chances of the Federal Reserve easing monetary policy earlier.