Federal Reserve spokesperson: A rise in the unemployment rate may garner broader support for a 50bp rate cut

ChainCatcher news, Federal Reserve mouthpiece Nick Timiraos: Friday is exactly the last day before Federal Reserve officials enter the pre-meeting blackout period. Federal Reserve's Williams and Governor Waller are scheduled to speak after the employment report is released, which is the last opportunity to set expectations for the upcoming meeting. With economic growth and inflation slowing, it is more reasonable for the Federal Reserve to lower interest rates from the current level of around 5.3% to about 4.5%. If there are no signs that the weak employment in July will persist into August, some Federal Reserve officials may resist a significant rate cut of 50 basis points. However, officials who were open to rate cuts at the July meeting may support a 50 basis point cut in September if the unemployment rate rises again and job growth slows further, as they will receive broader support. (Jin Shi)