The Federal Reserve may cut interest rates by 25 basis points in September, signaling the start of a loosening cycle

ChainCatcher news, according to Jinshi reports, Mizuho Bank stated that the U.S. August non-farm payroll report further confirms the weakening tone of the labor market, with employment, hours worked, and income growth rates having fallen back to levels seen during the pandemic. The Federal Reserve is almost certain to cut interest rates by 25 basis points at the September meeting, and if August inflation is weaker than expected, the possibility of a 50 basis point cut is even greater. It is expected that the Federal Reserve will initiate a sustained easing cycle, aiming to reduce interest rates to around 3%.