FOMC voting members hint at a possible 25 basis point rate cut in September

ChainCatcher news, according to Jinshi reports, Richmond Fed President Barkin recently commented that the current employment decision-making approach of "low hiring, low firing" adopted by U.S. companies is unlikely to continue. He pointed out that if the economy weakens, companies may resort to layoffs.

Although companies have become more conservative in filling positions, this has not yet occurred, as companies are still reluctant to fire employees.

Barkin stated that he is taking a "trial and error" approach to interest rate cuts, indicating that he may support a 25 basis point cut, rather than the 50 basis point cut some analysts expect. He noted that the inflation rate is still half a percentage point above the Federal Reserve's 2% target, and that cutting rates could ultimately fuel inflation by boosting demand for housing and other goods.