US economy Resilient, ready for 4% FFR. The US labor market is solid, the Unemployment Rate drops to a low of 3.50%; and ADP Employment Change Sept. added +12% MoM, indicating the US economy is poised for further FFR hikes to 4% next November, complementing Hattrick’s +75Bps FFR hikes last September, July and June. On the other hand, the tight labor market contrasts with the US manufacturing data pointing to contraction, with ISM Manufacturing Sept. at level 50.9 (Vs. Aug. 52.8); or the lowest level since Pre-Pandemic 2020. Meanwhile, the RBA’s policy is to only increase the Cash Rate Target Oct. +25Bps (Vs. Surv. +50Bps), making it the first Central Bank to admit that now is the time for looser monetary policy.
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