Inflation and labour market performance may have met the prerequisites for scaling back bond purchases.

Fed hawks will stress that wages are rising fairly fast, a sign that the labour market continues to tighten.

Fed policy makers may not care too much about the weak non-farm payrolls data in September and are expected to take the first step towards withdrawing stimulus at next month's monetary policy meeting.

"this will not change the Fed's downsizing schedule, and inflation and labor market performance may have met the prerequisites for scaling back bond purchases," said Rubeela Farooqi, chief US economist at High Frequency Economics. But this has little to do with tightening monetary policy, the conditions for raising interest rates are much stricter, and it is far from the time yet.

The Federal Open Market Committee (FOMC) kept interest rates near zero at its September meeting and said cuts to $120 billion a month in asset purchases "may soon become a reality" if the economy continues to make progress. Chairman Powell told reporters that the process could be announced as early as November 2-3 at the policy meeting that the job market is close to meeting the criteria for "substantial further progress" set by the Federal Reserve.

Employment data released by the labor department on Friday showed that non-farm payrolls rose 194000 in September, the lowest so far this year, but was revised up to 366000 in august. The unemployment rate fell to 4.8% in September, partly reflecting a decline in the size of the labour force. At the same time, the average hourly wage has risen sharply.

Bloomberg Economist: "the September report released today is the only monthly employment data available to the FOMC before the November meeting. Although it does not inspire confidence in the rebound in the labor market, we do not think the Fed will pay too much attention to the weakness of the data, but will attribute it to epidemic-related factors. The reduction will be officially announced in November."

Roberto Perli, a partner at Cornerstone Macro LLC, said the Fed may think the data report is generally more positive than non-farm payrolls because the August data was revised upward and the number of educators was seasonally adjusted. Perli still believes that code reduction will begin in November.

In addition, rising wages and falling unemployment may be seen as signs of an improvement in labour market idleness.

Thomas Costerg, senior US economist at Pictet Wealth Management, said, "Fed hawks will emphasize that wages are rising quite fast, which is a sign that the labor market continues to tighten." The Fed has made great efforts to reach a consensus on reducing the size in November, and it is already on the horizon, and it is very difficult to stop it.

Diane Swonk, chief economist of the Grant Thornton LLP, said the Fed thought the report was "cautious, not catastrophic, and given the upward revision of payrolls in August, the Fed's size reduction plan should not change".