TechFlow, August 22 — According to Jinshi Data, although the three-month average of U.S. employment growth currently stands at only 35,000 people, Chris Weston, Head of Research at Pepperstone, said Federal Reserve policymakers—especially those more concerned about core PCE continuing to deviate from the 2% target—would only support a "insurance cut" after the release of weak August nonfarm payrolls data on September 5.
He added that the Fed's credibility is facing a severe test. Cutting rates in September when core PCE is expected to be 100 basis points above target would be a difficult decision under any circumstances. Weston also noted it remains unclear whether tariff pass-through effects will gradually materialize.
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