JPMorgan Chase: The extent of the Federal Reserve's interest rate cut in September depends on the next non-farm payroll data

A research report from JPMorgan Chase (JPM.N) stated that yesterday's U.S. CPI data has given the green light for the Federal Reserve to start cutting interest rates at its upcoming September meeting. The only question now is whether it will start with a 50 basis point cut, or a more moderate 25 basis point cut. The decisive factor in this will depend on how much of a rebound there is in the August employment report. An increase in employment of between 160,000 and 200,000 could eliminate most of the concerns raised by the July employment report, while an increase of less than 100,000 could tip the risk balance towards growth and lead to larger rate cuts.