Economists Predict Federal Reserve Rate Cut Amid Weak Nonfarm Payroll Data

According to Odaily, Comerica Bank's Chief Economist Bill Adams predicts that the increase in nonfarm payrolls will be only 30,000, significantly lower than widespread expectations. Adams stated that the Federal Reserve is unlikely to change its course based on this report, unless there is extremely unexpected data. Therefore, it is anticipated that the Federal Reserve will cut interest rates by 25 basis points at next week's meeting. Ernst & Young-Parthenon Chief Economist Gregory Daco also expects a 25 basis point rate cut. However, he cautioned that some policymakers might use the weak October nonfarm data to bolster support for more aggressive rate cuts. Daco mentioned, "I don't think Powell will support the camp of aggressive rate cuts." He expects Powell to continue believing that gradual adjustments to monetary policy are most beneficial for the economy and will advocate for a 25 basis point rate cut by the committee.