# Huatai Sees December Fed Hike as Base Case After Weak Jobs Report

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/26529
Published: 2026-10-03T06:59:30.000Z
Updated: 2026-10-03T06:59:30.000Z
Section: Investing

> The firm expects the September payroll report to reduce the urgency for consecutive rate hikes in the short term. It sees October payrolls staying weak before a possible rebound.

Huatai Securities sees the weaker-than-expected September nonfarm payroll report reducing the urgency for consecutive rate hikes in the short term, while another increase in December remains its base case.

The three-month average of new nonfarm payrolls was 51,000, near the level associated with balanced employment. The unemployment rate also remained relatively low, suggesting the labor market was steady but not especially tight.

Slower wage growth alongside weaker September hiring points to slower real-income growth that month. Household consumption may not sustain August’s strong performance.

The NFIB hiring-intentions indicator suggests October nonfarm payrolls may remain weak, with payrolls potentially rebounding afterward.