"Federal Reserve's megaphone": Non-farm payrolls will affect the extent of the Fed's rate cuts

ChainCatcher news, "Fed mouthpiece" Nick Timiraos' latest article states that the U.S. employment report for August, set to be released on Friday, will play a larger role than usual in determining the Fed's rate cut this month.

At the Fed's September meeting, the debate will focus on whether to start cutting rates by 25 or 50 basis points to prevent undesirable weakness in the labor market. The August hiring and employment report will be key to this decision. A decent employment report could prompt officials to begin a possible series of rate cuts with a 25 basis point reduction. If hiring is weak or the unemployment rate rises, as it did in July, a larger rate cut will be imminent. (Jin Shi)