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

ChainCatcher news, according to Jinshi reports, Kevin Swift, a senior economist at ICIS Global Chemicals, stated that the latest CPI report from the United States will make the Federal Reserve's interest rate decisions "more challenging." He pointed out that due to a weak job market, the Federal Reserve may lower interest rates at the September meeting. Although wages grew by 3.9% year-on-year in August, the growth rate is slowing, which will weaken real income growth and support for consumer spending. Meanwhile, initial jobless claims have risen to the highest level since October 2021, and Swift believes this may indicate the beginning of increased layoffs and a trend of weakness in the labor market.