BOCHK: Employment market data will become an important factor affecting the pace of future rate cuts by the Federal Reserve

Bank of China Hong Kong pointed out that future employment market data will become an important factor affecting the pace of the Fed's interest rate cuts. The Fed kept the federal funds rate unchanged, but changed its focus to pay more attention to the employment market situation. The change in the wording of this statement reflects the fact that current U.S. inflation is gradually approaching the target level, and the Fed is more concerned about the employment market situation. If the job market weakens, it will affect consumer spending and corporate profits, potentially prompting the Fed to accelerate its rate cuts. The focus in the future will be on the global central bank annual meetings and the rate dot plot update in September. It is expected that the median interest rate in September will be lower than the June estimate