TechFlow news — On September 6, Nick Timiraos, known as the "Fed whisperer," said the U.S. Labor Department will release its August employment report this Friday, a report that will significantly influence the Federal Reserve's rate-cut decision later this month. Fed officials have signaled that a rate cut at their mid-September meeting is almost certain, but there remains debate over the exact size. If the jobs data show a solid labor market, the Fed may lean toward a 25-basis-point cut; however, if employment appears weak or the unemployment rate rises sharply, a 50-basis-point cut becomes more likely.
Notably, September 8 marks the last day before the self-imposed quiet period for Fed officials ahead of the meeting. New York Fed President Williams and Fed Governor Waller are scheduled to speak after the employment report is released—likely their final opportunity to shape market expectations before the meeting. Diane Swonk, Chief Economist at KPMG, said: 'There’s a strong case for a 50-basis-point cut. The labor market hasn’t fallen into recession, but it’s becoming fragile. We don’t want it to slip unintentionally.'
