Wall Street Predicts Consecutive 'Big Cuts' by the Fed Starting September Amidst U.S. Employment Shock
Following the release of disappointing U.S. employment statistics for July Following the release of disappointing U.S. employment statistics for July, major Wall Street financial institutions are predicting that the Federal Reserve (Fed) will implement consecutive significant interest rate cuts, known as 'big cuts,' starting in September. Citigroup, JPMorgan, and Goldman Sachs are among the key financial firms forecasting multiple rate cuts within the year, while the Fed remains cautious. This article examines the economic context, financial institutions' forecasts, and the Fed's response. Deterioration in U.S. Employment Statistics On July 2, the U.S. nonfarm payrolls increased by only 114,000 jobs from the previous month, with the unemployment rate rising to 4.3%. This lackluster job growth and unexpected rise in the unemployment rate have sparked concerns that the U.S. economy may be cooling faster than initially anticipated. These employment figures play a crucial r...