Fed Rate Cut Decision Hinges on August Jobs Report

The Federal Reserve is expected to lower interest rates at its meeting on September 17-18. The amount of the cut, either a quarter or half a percentage point, depends heavily on the August employment report. Wall Street banks have different predictions for the August unemployment rate and job growth, which influences their expectations for the Fed`s decision. These predictions are summarized in a table that shows the anticipated interest rate cut based on various unemployment rates and job growth numbers. Reuters` economists predict a 4.2% unemployment rate and 160,000 new jobs.