Market Analysis: Nonfarm payroll data remains volatile, and the policy adjustment threshold for the Federal Reserve is quite high
Golden Ten Data reported on April 3 that Zachary Griffiths, Head of Investment Grade Credit at Creditsights, stated: The data is still subject to further downward revisions, with February showing a decrease of 133,000. This indicates significant volatility and frequent revisions, which are typically adjusted again during annual reviews. Therefore, it is difficult to gain clear signals from the net data over the past few months. Regarding the Federal Reserve's policy based on these data, the threshold for any policy adjustment is currently very high. I think they are probably in a wait-and-see mode, especially since we have seen employment data significantly exceed expectations, well above the breakeven level discussed by the Federal Reserve in relation to the unemployment rate. Thus, we believe the threshold for a rate hike is higher than for a rate cut, but policy is likely to remain unchanged for the foreseeable future, and today's report undoubtedly reinforces this view.
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