Citigroup: If the U.S. unemployment rate reaches 4.3% in August, the Fed will cut interest rates by 50 basis points

Wall Street believes that this week's non-farm data may be a decisive factor in the extent of the Fed's interest rate cut in September. Citibank analysts expect non-farm payrolls to increase slightly by 125,000 in August, a slight increase from 114,000 in July, and the unemployment rate is expected to stabilize at 4.3%, or it may fall to 4.2%. Citi believes that if the employment report meets the bank's expectations, that is, the number of jobs increased by 125,000 and the unemployment rate is 4.3%, then the Fed will cut interest rates by 50 basis points at the upcoming September meeting. The reason for the rate cut is that there are downside risks in the labor market, especially when job growth is less than 175,000 and the unemployment rate remains high. (Jinshi)