ICIS Global economists: The weakness in the U.S. labor market overshadows inflationary pressures, and the Fed is expected to cut interest rates again next week.

On September 12, Kevin Swift, a senior economist at ICIS Global Chemicals, stated that the latest CPI report from the United States will make the Fed's interest rate decision "more challenging." Swift indicated that despite this, due to a weak labor market, the Fed may cut rates at the September meeting. He noted that although wages rose by 3.9% year-on-year in August, the growth rate is slowing, which will weaken real income growth and support for consumer spending. Meanwhile, initial jobless claims rose to the highest level since October 2021. Swift said, "This may be the beginning of increased layoffs and a trend of a weak labor market. The situation will become clearer in a week or two." ( Jin10 )