Kevin Swift: U.S. job market may prompt Fed rate cuts

According to ChainCatcher, Kevin Swift, senior economist at ICIS Global Chemicals, said that the latest CPI report in the United States will make the Fed's interest rate decision "more challenging." He noted that the Fed could cut interest rates at its September meeting due to weak job markets. Although wages rose 3.9% year-on-year in August, growth is slowing, which will weaken real income growth and support for consumer spending. Meanwhile, the number of initial jobless claims rose to its highest level since October 2021, which Swift believes could be the beginning of a trend of increasing layoffs and a weak labor market.