CEX: Interest rate cuts may support asset prices, but weak employment and high debt may exacerbate market volatility

On December 10, CEX released its latest report saying that after the recent weak performance of US labor data, the market expects the Federal Reserve to announce a rate cut today (December 10). The current voluntary turnover rate has fallen to about 1.8%, the lowest level since 2020, while the redundancy rate is near a three-year high. This suggests that upward pressure on wages is weakening, providing a basis for rate cuts, which are key drivers for Bitcoin ($BTC) and other risk assets. Consumers are increasingly relying on credit. The current year-on-year increase in the Consumer Price Index (CPI) is hovering between 2.5% and 2.7%, still above the 2% policy target. Meanwhile, U.S. credit card debt has exceeded $1.2 trillion, with an average interest rate of over 20%. Tighter household finances have made the macro environment for risk assets more vulnerable. For traders, the combination of weak labor data and rising credit use means a cautious strategy. Interest rate cuts may support asset prices, but weak growth and consumer constraints may still amplify the intensity of market shocks.