Institutions: If the unemployment rate rises by 0.1% per month, the Fed's room for interest rate cuts is underestimated.

U.S. inflation in November fell far short of economists' forecasts, while the unemployment rate unexpectedly rose that month. Investors have been reluctant to interpret these figures too closely due to the distorted and incomplete information resulting from the 43-day federal government shutdown. Michael Lorizio, head of U.S. interest rates and mortgage trading at Manulife Investment Management, stated, "Even taking that into account, this highlights that there is very limited room for current inflation data to rise significantly beyond expectations. If the labor market continues on its current trajectory, with the unemployment rate rising by 0.1 percentage point per month, I think the scope for further rate cuts next year may be somewhat underestimated." (Jinshi)