Observers refute Wall Street's view: the Fed will not agree to a 50 basis point rate cut

The soft July non-farm payroll report has exacerbated concerns in the market that the Fed cut rates too late, but the likelihood of a 50 basis point rate cut in September is small, as a significantly large rate cut may be seen as a warning signal. Chicago Fed President Charles Evans stated, "We don't want to overreact to any one month of data." In addition, many economists closely monitoring the Fed immediately refuted the view of a 50 basis point rate cut. Gregory Daco, Chief Economist at EY, said, "Given the hawkish tendencies of Fed officials, I expect a rate cut in September is no problem, but a 50 basis point cut will face resistance." Joseph Lavorgna, Chief Economist at SMBC Nikko Securities, said, "If the Fed cuts rates by 50 basis points, it will cause panic, as market expectations for a significant rate cut are too premature." During Powell's tenure as Fed Chair, the FOMC will only make significantly large rate adjustments in emergency situations