What is required from today's non-farm payrolls report to reduce interest rates by 50 basis points from the Federal Open Market Committee.
As the jobs report is scheduled to be released today, Friday, September 6 at 3: 30 pm Egypt time, it is considered the most important news this month after the interest rate decision, as the focus is on this matter intensively before the FOMC meeting in September. It is now almost certainly unlikely that the Fed will cut interest at the next meeting this month, but whether it will be a cut of 25 basis points or 50 basis points.
Analysts at Goldman Sachs also said that the most important news to watch is the unemployment rate.
There are some scenarios that would lead the Fed to cut interest rates by 50 basis points:
- If the unemployment rate is 4.30% or higher, then Goldman Sachs expects the Fed to cut interest rates by 50 basis points on September 18.
- If unemployment is 4.19% or lower, Goldman Sachs expects to cut interest rates by 25 basis points, as long as the jobs figures are positive.
- If unemployment is between 4.20% and 4.29%, expect a reduction in interest rates by 25 basis points
- if the job numbers are greater than 150 thousand jobs, and a reduction of 50 basis points if the key figure is less than 150 thousand jobs.
