Citi: If the job market continues to slump, the Fed may cut rates by 125 basis points by the end of the year

Citigroup economist Sojin stated that if the US employment market continues to deteriorate, the Federal Reserve may cut interest rates by 125 basis points before the end of the year. It is expected that the Federal Reserve will start with a 50 basis point cut, followed by another 50 basis point cut, and finally a 25 basis point cut in December. The rising unemployment rate is concerning and may prompt the Federal Reserve to adopt a more aggressive rate-cutting policy. The market has high expectations for a 25 basis point rate cut in September, but the likelihood of a 50 basis point cut is lower. Federal Reserve Chairman Powell has indicated the direction of policy adjustments, with future actions depending on employment data and economic changes