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Citibank: It is expected that the number of non-farm employment in the United States will increase by 125,000, prompting the Federal Reserve to cut interest rates by 50 basis points

Citibank: It is expected that the number of non-farm employment in the United States will increase by 125,000, prompting the Federal Reserve to cut interest rates by 50 basis points

Bitget2024/09/03 13:09

ChainCatcher news, according to Walter Bloomberg, Citigroup analysts said in a report to clients on Tuesday that they expect the upcoming U.S. Non-Farm Payrolls (NFP) to add 125,000 new jobs, with an unemployment rate of 4.3%.

Citibank stated: "The shift from inflation to employment has been completed," indicating that the focus of Federal Reserve policy will shift from inflation indicators to employment data. Citibank's forecast suggests that an increase of 125,000 jobs and an unemployment rate of 4.3% would be sufficient for the Fed to cut interest rates by 50 basis points.

The report pointed out that if the unemployment rate drops slightly to 4.2%, the Fed may choose to cut interest rates by 25 basis points, although this would not change Citibank's expectation for continued easing in the labor market and economic slowdown. The volatility in the labor market has become as evident as recent inflation data.

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