The Federal Reserve will cut interest rates in a high inflation environment, increasing the risk of rate cuts

ChainCatcher news, according to Jinshi reports, due to the rapid cooling of U.S. non-farm employment data, the difficulty for the Federal Reserve to cut interest rates in September has become very high. The futures market expects a 98% probability that the Federal Reserve will cut rates by 25 basis points in September, and expectations for a 50 basis point cut have also begun to emerge. Pallas Capital analyst Rich Mullen stated that it is unusual for the Federal Reserve to cut rates in an environment of high inflation, and the recently preferred inflation indicators are far from the 2% target.