Fed's Goolsbee hints at multiple rate cuts in next year

Chicago Fed President Goolsbee said that long-term trends in labor market and inflation data prove that the Fed will soon ease interest rate policy and then gradually continue this process over the next year. "It is clear that the path is not just to cut interest rates soon, but to cut interest rates multiple times over the next 12 months." For months, officials have welcomed the cooling of the labor market. Goolsbee said that continued weakness, however, increases the likelihood that the job market will continue to cool and may get worse. The non-farm data to be released on Friday will reflect this key issue. But "I don't want us to make a decision based on one data point." Economists generally expect the Fed to cut interest rates by 25 basis points in September, but some believe that Friday's weak employment report may prompt the Fed to cut interest rates by 50 basis points. (Jinshi)