Citibank: It is expected that the U.S. non-farm payrolls will increase by 125,000, prompting the Federal Reserve to cut interest rates by 50 basis points

ChainCatcher news, according to Walter Bloomberg, Citigroup analysts stated in a report to clients on Tuesday that they expect the upcoming U.S. Non-Farm Payrolls (NFP) to increase by 125,000 new jobs, with an unemployment rate of 4.3%.

Citigroup stated, "The shift from inflation to employment has been completed," indicating that the focus of Federal Reserve policy will shift from inflation indicators to employment data. Citigroup's forecast suggests that an increase of 125,000 jobs, combined with an unemployment rate of 4.3%, would be sufficient to prompt the Federal Reserve to cut interest rates by 50 basis points.

The report noted that if the unemployment rate slightly decreases to 4.2%, the Federal Reserve may choose to cut rates by 25 basis points, although this would not change Citigroup's expectations of continued slack in the labor market and an economic slowdown. The volatility in the labor market has become as pronounced as inflation data in recent years.