$BTC JPMorgan Chase said yesterday's US consumer price index data has given the Fed the green light to cut interest rates, and it has decided to start cutting interest rates at the upcoming September meeting. The only question now is whether the rate cut will be 50 basis points or a more modest 25 basis points. The decisive factor will depend on the extent of the recovery in the August employment report. An increase in jobs between 160,000 and 200,000 may eliminate most of the concerns raised by the July employment report, while job growth below 100,000 may tilt the balance of risks toward growth and lead to deeper rate cuts.
