Is the Fed's September rate cut stable? How will the dog dealers manipulate the market trend?
This week, Fed Chairman Powell did not make a clear statement on the rate cut, but the market expects the Fed to cut interest rates in September. He mentioned that the Fed will pay close attention to the data and continue to make decisions at each meeting, emphasizing the importance of today's data. So, what about the latest data?
On the last trading day of this week, the Federal Reserve released non-farm payrolls, unemployment and wage growth data. Powell said that they do not want employment to fall further, and if the employment rate falls more than expected, they may need to act faster. This means that if the employment rate falls sharply, the Fed may cut interest rates by 50 basis points in September instead of 25 basis points.
Details of today's data are as follows:
U.S. unemployment rate: 4.3% (expected and previous value: 4.1%)
Non-farm payrolls: 114,000 (expected: 175,000, previous value: 206,000)
Average hourly wage: 3.6% (expected: 3.7%, previous: 3.9%)
The data performance is very good, and the September rate cut should be completely confirmed. If the data next month is also positive, the Fed may even discuss a 50 basis point rate cut;
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