According to Jin Ten data reports, "the Federal Reserve's mouthpiece" Nick Timiraos stated that employment growth in the United States sharply slowed this summer, which is likely to lead the Federal Reserve to decide to cut interest rates by 25 basis points in the meeting two weeks from now. Federal Reserve Chairman Powell hinted last month that if future data shows a slowdown in the labor market, the Federal Reserve may cut interest rates, and the employment report for August clearly shows that employment growth has significantly slowed since the beginning of the year. Data released by the Bureau of Labor Statistics indicated that the U.S. added only 22,000 jobs in August, while jobs decreased in June. Another survey showed that the unemployment rate rose from 4.2% in July to 4.3%. Federal Reserve officials have been reluctant to cut interest rates until recently, as inflation has stopped declining.
The White House's significant restrictions on immigration, cuts to the federal workforce, and substantial tariff increases have disrupted this year's economic outlook, raising concerns about weakened demand and increased price pressures, which may pose different directional choices for FOMC voting members. However, Powell's speech last month helped bridge the divide among the voting members.