Agencies: Fed "inflation fears" will only support interest rate cuts if non-farm payrolls weaken again in August
2025-08-22 02:07:06
While the three-month average of US job growth is currently just 35,000, Chris Weston, head of research at Pepperstone, said Fed policymakers - especially those more concerned about the core PCE continuing to deviate from its 2 per cent target - would back an "insurance-style cut" only after the August non-farm payroll data, released on September 5, showed renewed weakness. He added that the Fed's credibility was being severely tested. Cutting rates in September, when core PCE is expected to be 100 basis points above target, would be a difficult decision in any environment. Weston also noted that it is unclear whether the tariff transmission effect will gradually become apparent. (Jin Ten)
Disclaimer:
1. The information provided does not constitute investment advice. Investors should make independent decisions and bear all risks themselves.
2. The copyright of this content belongs to the original author. The views expressed herein are solely those of the author and do not represent the stance or position of this website.
