Rate cut on cards despite strong employment data.

Investment Adviser, November, 2007

Byline: Strategists still believe Federal Reserve will cut rates even though 166,000 jobs were added to US economy

Recent US employment data was stronger than anticipated, but strategists still believe the Federal Reserve will cut interest rates further.

Non-farm payroll data showed 166,000 jobs were added to the US economy in October.

Mike Lenhoff, chief strategist at Brewin Dolphin, said the employment data had prompted hopes the Federal Reserve would put a halt to further interest rate cuts, however he remained unconvinced.

He said: "I am not so sure. It is only one month's figures. Non-farm payroll is important but there are other indicators that suggest the economy is slowing down or weakening.'

For example, the...

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