Fed Chair nominee Hassett warns: The timing for pausing rate cuts in December is "very bad".

[Fed Chair candidate Hassett warns: December pause on rate cuts is “very bad” timing] After the U.S. Bureau of Labor Statistics released a stronger-than-expected September non-farm payroll report, some Wall Street institutions increased the probability that the Fed will not cut rates next month. On Thursday evening local time, JPMorgan followed in the footsteps of Morgan Stanley and retracted its prediction of a 25 basis point interest rate cut by the Fed in December. The bank still expects the next rate cuts to occur in January and April of next year. However, one of the Fed chair candidates named by Trump, White House National Economic Council Director Kevin Hassett, stated earlier that it would be “a very bad time” for the world's largest central bank to pause interest rate cuts, as the government shutdown has already weighed on economic growth in the fourth quarter. Hassett stated that he expects the government shutdown to result in a 1.5 percentage point decline in GDP for the fourth quarter. Meanwhile, he noted that the Consumer Price Index (CPI) for September showed that inflation performed better than expected. “I think it is not wise (to pause interest rate cuts), as the economic headwinds in the fourth quarter are indeed quite significant,” Hassett said in an interview with Yahoo Finance on Thursday, noting that the employment report for September is still not enough to offset the impact of other factors.