ICIS Global Economist: US Weak Job Market Overshadows Inflation Heat, Expects Fed to Cut Rates Next Week

BlockBeats News, September 12th, ICIS Global Chemicals Senior Economist Kevin Swift stated that the latest CPI report in the United States will make the Federal Reserve's interest rate decision "more challenging."

Swift said that nevertheless, due to a weak job market, the Fed may cut interest rates at the September meeting. Swift stated that despite a 3.9% year-on-year increase in wages in August, the growth rate is slowing, which will weaken real income growth and support for consumer spending. At the same time, initial jobless claims rose to the highest level since October 2021.

Swift said, "This may be the beginning of an increase in layoffs and a trend of labor market weakness. In another week or two, the situation will become clearer." (IG)