UBS’s latest assessment flags a softer drift in the US labor market, potentially easing the Federal Reserve‘s stance on early‑year policy moves. UBS Chief Economist Paul Donovan stresses that the data look fragile, with the Labor Department survey possibly distorted by the ongoing government shutdown, complicating interpretation and credibility.

Morgan Wealth Management’s Elyse Ausenbaugh voices vigilance, particularly regarding October’s readings, arguing the report reinforces the market’s view of the Fed policy path. The recent string of precautionary rate cuts is framed as an insurance maneuver to nudge policy toward neutral, with a potential additional adjustment likely in early 2026 if growth remains resilient and the Fed remains data‑dependent.

Taken together, the attention remains on data quality and a cautious tempo for policy, avoiding overstatement. The market continues to price a gradual rates normalization, aligning policy with evolving fundamentals while maintaining prudent risk management for investors.