CITIC Securities: Currently, the upward inflation risks are squeezing the space for the Federal Reserve to cut interest rates.

CITIC Securities pointed out that the US non-farm payroll data shows that employment in the US improved marginally in March, but sustainability still needs to be observed. The number of new non-farm payroll jobs in the US in March exceeded expectations, recording 178,000 people, partly driven by short-term disturbance repairs. Although the structure of employment growth in March has improved compared to February, growth in many industries remains low. If the US-Iran conflict continues, it is expected to put pressure on the global supply chain, and there may still be pressure on US employment in the future. However, the current risk of inflation rising may squeeze the space for the Federal Reserve to cut interest rates.