Is a 0.25 percentage point rate cut sufficient, prompting deliberation at the Federal Reserve regarding intensifying discussions.

September 8, 2024 10:39 JST (excerpt)
Uncertainty among investors also grows regarding the next move by the Federal Reserve following the August employment statistics.
While aiming for an "economic soft landing," there continues to be concern about the risk of inflation resurgence.

Against the backdrop of inflation slowdown and cooling labor market, the US Federal Reserve is expected to begin the process of monetary tightening at the Federal Open Market Committee (FOMC) meeting on the 17th and 18th of this month. The major issue that the authorities currently face is whether a slight interest rate cut is sufficient to maintain the expansionary trend of the US economy.
The August employment statistics, released on the 6th, showed a slowdown in the growth of non-farm sector employment over the past three months, at a pace not seen since the early stages of the COVID-19 pandemic in 2020. Nonetheless, investors remain skeptical about whether monetary authorities will opt for a larger interest rate cut at this month's meeting.