Huatai Securities expects the Federal Reserve to pause rate cuts from January to May, followed by 1-2 cuts after the new chairman assumes office

In December, the US added 50,000 non-farm payroll jobs, falling short of the 70,000 forecast, with prior revisions totaling 76,000. The three-month average roped in at only 29,000.

Despite weaker jobs data, the report from Huatai Securities suggests gradual improvement. The Federal Reserve is expected to hold off on rate cuts from January to May, making 1-2 cuts afterward.

Weak job growth is concentrated in few sectors; however, initial jobless claims show improvement. The Fed’s decision to hold rates steady indicates a careful approach regarding economic indicators.