Agencies: The Federal Reserve may have fallen behind the curve and may accelerate the pace of interest rate cuts

Ipek Ozkardeskaya, senior analyst at Swissquote, said the Fed may indeed be behind the curve in trying to anticipate tariff-driven inflation, given the downward revision in US job growth, meaning bigger and faster rate cuts are likely in the coming months, depending on how inflation behaves. The US will release PPI data for August within hours, she noted, but the real question is how much of the rising input costs will feed into CPI data due tomorrow. The stronger the inflation data, the slower the Fed will cut interest rates, which could hit investor sentiment. Investors are currently happy to see a weaker job market in exchange for a bigger rate cut. (Jin Ten)