Institutions: Lower-than-expected non-farm payrolls provide talking points for the Fed's dovish stance, but recent factors may weaken the necessity for rate cuts.

David Rees, Global Head of Economics at Schroders, stated that the significantly weaker-than-expected non-farm payroll data will provide ample material for discussion among doves within the Federal Reserve. However, at least part of the disappointing figure was due to strikes in the healthcare sector, a situation that should be reversed. Furthermore, despite the weak jobs report, we believe that continued growth in labor demand is inevitable given the ongoing strong growth of the US economy. It remains unclear whether incoming Fed Chairman Kevin Warsh will change his view that the application of artificial intelligence will significantly improve US productivity and create room for lower interest rates. However, any recovery in the job market, and the inflationary risks posed by events in the Middle East, will diminish the need for a rate cut in the short term. (Jinshi)