Analysis: Shrinking job market will force the Federal Reserve to cut rates consecutively by 125 basis points to 2.25%

According to ChainCatcher, former Merrill Lynch analyst David Rosenberg stated that the U.S. economy will face numerous challenges in 2026, with the job market likely to contract sharply, thereby weakening the economy and forcing the Federal Reserve to respond with significant interest rate cuts. The biggest surprise will be the realization that the labor market is not cooling, but actually shrinking.