According to BlockBeats, on September 7, former U.S. Treasury Secretary Summers said that although the August non-farm payrolls report was not particularly bad, it did make it more difficult to predict the extent to which the Federal Reserve might cut interest rates this month.
“The data are not showing very clear weakness, but if you are concerned about recent trends in the statistics, they certainly don’t give you assurances about the health of the economy,” Summers said in an interview. “The odds of a 25 basis point and a 50 basis point cut in September look closer than I would have guessed a month or two ago.”
Summers said that, in the final analysis, the size of the Fed’s first move is not important. Officials will closely monitor the development of the economic outlook and adjust policy accordingly. “If the economy weakens significantly, they will cut rates significantly,” he said. “If the economy does not really weaken significantly, they will probably cut rates at a rate of about once a meeting.” (Jinshi)
