TechFlow news — On September 6, according to Jinshi Data, Chicago Fed President Austan Goolsbee said that long-term trends in labor market and inflation data suggest the Federal Reserve may soon ease its monetary policy and cut interest rates multiple times over the next year. Goolsbee stated, "It's clear the path ahead includes not only a rate cut in the near term but also multiple cuts over the next 12 months." He emphasized that while officials welcome a cooling labor market, continued weakness could intensify the slowdown in employment and even lead to worsening conditions.
Regarding the upcoming nonfarm payrolls data to be released on Friday, Goolsbee said it would reflect key conditions in the job market, but he stressed, "We shouldn't make decisions based on a single data point." Markets broadly expect the Fed to cut rates by 25 basis points in September, though some economists believe a weak jobs report on Friday could prompt a 50-basis-point reduction.
