Kevin Swift: A Weak U.S. Job Market May Prompt the Federal Reserve to Cut Interest Rates

According to ChainCatcher, citing Golden Ten Data, Kevin Swift, Senior Economist at ICIS Global Chemicals, stated that the latest US CPI report will make the Federal Reserve's interest rate decisions "more challenging." He pointed out that due to a weakening job market, the Federal Reserve may cut interest rates at its September meeting. Although wages in August increased by 3.9% year-on-year, the growth rate is slowing down, which will weaken real income growth and support for consumer spending. Meanwhile, initial jobless claims have risen to their highest level since October 2021. Swift believes this may signal the beginning of increased layoffs and a weakening labor market trend.