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Fed's Mouthpiece: The non-farm report is unclear, whether the Fed will cut rates by 25 or 50 basis points in September is still unknown

Fed's Mouthpiece: The non-farm report is unclear, whether the Fed will cut rates by 25 or 50 basis points in September is still unknown

Bitget2024/09/06 14:02

"Federal Reserve mouthpiece" Nick Timiraos suggests that the non-farm employment report could potentially provide a clear signal about the magnitude of the Fed's first rate cut, whether it's 25 basis points or 50 basis points, market pricing will immediately rise to 90%. However, this non-farm employment report did not resolve this issue well. Currently, market pricing for a rate cut of either 25 or 50 basis points is "split in half". Overall non-farm data hasn't deteriorated enough to shift baseline expectations towards a rate cut of 50 basis points. But considering revised data, it isn't convincing enough to completely dispel speculation about larger cuts.

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