If the unemployment rate is 4.3%, Fed will cut by 50bps: Citi
Investing.com – Should the U.S. unemployment rate stay at 4.3%, the Federal Reserve is likely to implement a 50 basis points rate cut at its next meeting in September, Citi economists said in a Thursday note.
“With payrolls just having been revised down by an average of 68k per month, a reading like 125k might turn out to represent something closer to 55k new jobs,” Citi noted. Citi’s base view is that the unemployment rate will remain at 4.3%, alongside the addition of 125,000 new jobs. As such, they expect the policymakers to cut interest rates by 50bps at the next FOMC meeting.
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