Institutions: If the unemployment rate rises by 0.1% each month, the Federal Reserve's room to cut interest rates is underestimated

In November, the US inflation rate was far below economists' forecasts, and the unemployment rate unexpectedly increased that month. Due to information distortion and incompleteness caused by the 43-day federal government shutdown, investors have been reluctant to interpret these data too much.
Manulife Investment Management US interest rate and mortgage trading head Michael Lorizio said: "Even considering this, it highlights that the current inflation data has very limited room for a significant upside surprise. If the labor market continues on its current trajectory, with the unemployment rate rising by 0.1 percentage points each month, I think the room for further rate cuts next year might be somewhat underestimated."