Jerome Powell and the Fed Has New Bearish Jobs Data to Mull

The Challenger job cuts for October hit their highest level since 2003, with a total of 153,074 layoffs reported, nearly tripling from October 2024 and marking a year-to-date total surpassing 1 million. This rise in layoffs stems from factors like AI adoption, slowing consumer and corporate spending, and increased operational costs. The job market is also seeing a significant reduction in hiring, with only 372,520 hiring plans noted for the month, the lowest recorded since Challenger began tracking this data in 2012. The Fed, having recently made a hawkish surprise by trimming its policy rate, must now consider this negative employment data amidst ongoing government shutdowns that have resulted in the lack of official economic statistics. As the Fed navigates these challenging dynamics, market reactions have shown increased probabilities for potential rate cuts by December, alongside shifts in Treasury yield rates. Despite these economic challenges, cryptocurrency markets remain resilient, with Bitcoin staying stable at about $103,000, reflecting the overall uncertainty in the labor market and broader economy.

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