Michael Lorizio: If the unemployment rate rises by 0.1% each month, the Fed's rate cut space is underestimated

According to Jinshi News, Michael Lorizio, Head of U.S. Interest Rates and Mortgage Trading at Manulife Investment Management, stated that the U.S. inflation rate in November was far below economists' predictions, and the unemployment rate unexpectedly rose. He pointed out that although the federal government shutdown has distorted information, there is limited room for current inflation data to significantly exceed expectations. If the labor market continues on a trajectory of a 0.1 percentage point monthly increase in the unemployment rate, the potential for further rate cuts next year may be underestimated.