After weaker-than-expected US non-farm payrolls data was released, Chicago Fed President Goolsbee said the Fed would not overreact to single-month data. Major Wall Street banks have changed their tune, with JPMorgan and Citigroup predicting two 50 basis point rate cuts by the Fed this year. But observers have countered that the Fed would not agree to cut rates by 50 basis points.

Chicago Fed President: The Fed will not overreact to single-month data.

• Chicago Fed President Austan Goolsbee emphasized that the Fed would not overreact to any single data report and would receive plenty of economic data before the next meeting.
• Goolsbee made the comments after weaker-than-expected non-farm payrolls data was released. He said the Fed's job was to find the "through line" between data and act with "stability". However, he also noted that if monetary policy remained restrictive for too long, decision makers must consider the "employment" aspect of the dual mandate.

Wall Street's big banks all change their tune, JPMorgan and Citigroup expect the Fed to cut interest rates twice by 50 basis points this year.

• In view of the latest data showing a cooling labor market, major Wall Street banks are increasingly expecting the Fed to start a period of aggressive easing.
• After the release of data on rising US unemployment rates in July earlier on Friday, economists at Bank of America, Citigroup, Goldman Sachs, and JPMorgan adjusted their predictions for the rate trajectory, expecting earlier, larger or more interest rate cuts.

Observers refute Wall Street's views and state that the Federal Reserve will not agree to a 50 basis point interest rate cut.

• The weak July nonfarm payroll report intensified concerns that the Fed had been too late in cutting interest rates, but the likelihood of a 50 basis point interest rate cut in September by policymakers is slim, as such a large rate cut could be viewed as a warning.
• Gregory Daco, chief economist at Oxford Economics, said, "Given the tendency of Fed officials to be hawkish, I think it's OK to cut interest rates in September, but cutting 50 basis points will face resistance."
• Joseph Lavorgna, chief economist at SMBC Nikko Securities America, said, "If the Fed cuts interest rates by 50 basis points, it will cause panic, and the market's expectations of a large rate cut are too premature."

Barclays: Increase the prediction of the third interest rate cut by 25 basis points for the Federal Reserve's interest rate decision this year.

• According to the US jobs report released on Friday, Barclays economists have added a third rate cut to their forecast for the Fed's rate decisions this year, expecting a 25 basis point cut in November.

US Senator Warren: Not lowering interest rates is a "serious mistake" by Powell.

• Democratic Senator Elizabeth Warren posted on X that Federal Reserve Chairman Jerome Powell's decision not to cut interest rates was a "serious mistake."

Bank of England Chief Economist Pill warns not to further cut interest rates for now.

• Bank of England Chief Economist Huw Pill warns against expecting further interest rate cuts soon, saying that efforts to contain inflation are not yet complete and there is evidence that companies are still pushing up prices.