Jerome Powell, chairman of the US Federal Reserve, addressed the media after a Federal Open Market Committee (FOMC) meeting. Odds of a December rate cut remained low despite the release of delayed jobs data, with markets pricing in a 35% chance of a quarter-point cut from the Federal Reserve next month.

The September jobs report showed an uneven picture of the US labor market. While the economy added 119,000 jobs, surpassing expectations, the unemployment rate unexpectedly rose to 4.4%, the highest level since October 2021. Former Federal Reserve Vice Chairman Roger Ferguson noted that the data does not strongly suggest a need for a rate cut.

Despite the mixed data, some investors believe a December rate cut remains possible due to continued weakness in the unemployment rate. The level, closely watched by Fed policymakers, is concerning given the impact of immigration crackdowns on the labor pool. Goldman Sachs Asset Management suggests that weak hard data and near-target inflation could drive policy decisions moving forward.

With Powell’s term as Chair expiring in May, the stage is set for him to continue his risk-management approach to the labor market. Despite the uncertainty surrounding a potential rate cut, the decision will ultimately be based on a combination of economic indicators, inflation rates, and labor market conditions.

Read more at CNBC: Fed likely to not cut rates in December following delayed September data, according to market odds