Analyst: Labor data may signal the end of the Fed's "hawkish rate cut" era

According to TechFlow, on December 5, Daniel Loughney, an analyst at Mediolanum International Funds, stated that in line with market expectations, he anticipates the Federal Reserve will lower the federal funds target range by 25 basis points next week, driven by weak labor market statistics. In a report, the head and director of fixed income said: “Recent rate cuts have been viewed as ‘hawkish cuts,’ but this time, the weak labor market may prompt a more dovish response.” He noted that the key focus will be the “dot plot”—the interest rate forecasts of FOMC members—as well as the FOMC’s Summary of Economic Projections for the quarter. Market participants will look for any shifts in the Fed’s sentiment, which could reshape expectations for monetary policy in 2026. (Jinshi)