According to Jinshi Data, institutional analysis said that the classic "Taylor Rule" model shows that the current Federal Reserve benchmark interest rate is about 1.7 percentage points higher than the reasonable level, which is equivalent to seven 25 basis point rate cuts.

The previously released July non-farm payrolls data showed that the unemployment rate rose to 4.3%. The latest inflation data showed that the core PCE price index favored by the Federal Reserve rose 2.6% year-on-year in June.

Fed officials assume a "neutral real interest rate" of 0.8% and a long-term unemployment rate of 4.2%. Taking all of these factors into account, the model calculates an interest rate of 3.65%, while the current federal funds effective rate is about 5.3%.