{"id":11666,"date":"2025-09-09T12:16:11","date_gmt":"2025-09-09T12:16:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/11666\/"},"modified":"2025-09-09T12:16:11","modified_gmt":"2025-09-09T12:16:11","slug":"wall-street-bets-on-only-a-small-cut-despite-weak-jobs-data","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/11666\/","title":{"rendered":"Wall Street Bets on Only a Small Cut Despite Weak Jobs Data"},"content":{"rendered":"

Economy<\/a>
\n\"Wall <\/p>\n

Markets betting on a steep Federal Reserve rate cut may need to dial back expectations, according to JPMorgan strategist Fabio Bassi.<\/p>\n

He argues that while economic data has turned weaker, persistent inflation<\/a> makes a 50-basis-point move in September unlikely. Instead, the bank expects the Fed to opt for a standard 25bps cut.<\/p>\n

Bassi places the risk of a U.S. recession at 40%, but believes policymakers will tread carefully, especially given recent political turbulence following the dismissal of Fed Governor Lisa Cook. He stressed that the Fed\u2019s independence remains intact despite the backdrop, and that any easing will likely be limited unless the slowdown deepens.<\/p>\n

Market Pricing Points to Caution<\/p>\n

Investor positioning strongly favors a modest cut. Futures<\/a> markets currently price in an 88% probability that the Fed trims by just a quarter point at its September 17 meeting.<\/p>\n

The conviction has grown since the release of August\u2019s soft labor data, which showed only 22,000 jobs added alongside a rise in unemployment to 4.3%.<\/p>\n

Other Analysts Weigh In<\/p>\n

Citi chief economist Andrew Hollenhorst echoed the view, noting that while the weak jobs report justifies easing, it does not support a half-point reduction. Nomura\u2019s David Seif described any move as an \u201cinsurance cut\u201d designed to buffer labor market softness without signaling panic.<\/p>\n

Apollo\u2019s Torsten Slok went further, predicting that the Fed will continue cutting in the months ahead even if inflation stays above target.<\/p>\n

If the slowdown proves temporary, Bassi expects risk assets to retreat modestly while the U.S. dollar remains firm. The central bank, he suggests, is unlikely to move aggressively until inflation shows clearer signs of returning to its 2% goal.<\/p>\n

This publication is sponsored. Coindoo does not endorse or assume responsibility for the content, accuracy, quality, advertising, products, or any other materials on this page. Readers are encouraged to conduct their own research before engaging in any cryptocurrency<\/a>-related actions. Coindoo will not be liable, directly or indirectly, for any damages or losses resulting from the use of or reliance on any content, goods, or services mentioned. Always do your own research.<\/p>\n


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\n <\/a><\/p>\n

Author<\/p>\n

\"\" <\/p>\n

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.<\/p>\n


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