The Federal Reserve's mouthpiece: If the non-agricultural data tonight "explodes" again, a substantial interest rate cut will be imminent

BlockBeats news, on September 6, "Fed Mouthpiece" Nick Timiraos published an article on the occasion of the release of August non-farm data, saying that tonight's employment report will affect the extent of the Fed's interest rate cut. If the August non-farm is another bad employment report, it may lead to a sharp 50 basis point interest rate cut by the Fed, but if the employment situation is good, it will keep the Fed on track to cut interest rates by 25 basis points. At the Fed's September 17-18 meeting, the focus of the debate was whether to start with a more traditional 25 basis point interest rate cut or a larger 50 basis point interest rate cut to prevent an undesirable weakness in the job market.

The August recruitment and employment report, which will be released tonight, will be the key to making a decision on interest rate cuts. A decent employment report may prompt officials to start a possible series of interest rate cuts with a 25 basis point interest rate cut. Friday also happens to be the last day that Fed officials can communicate publicly before the start of the self-imposed pre-meeting silent period. New York Fed President John Williams and Fed Governor Steve Waller are scheduled to speak after the jobs report, the last chance to set expectations for the upcoming meeting.

"There is a very strong case for a 50 basis point rate cut," said Diane Swonk, chief economist at KPMG. "The labor market is not in recession, but it is on thin ice. Even with good data on Friday, the slack in the labor market is increasing." (Jinshi)