Japan Bank Reveals Fed’s Cornered Position, Predicts Interest Rate Cuts

Mizuho Bank has delivered a decisive blow to the Federal Reserve by asserting that the August US nonfarm payrolls report signals the labor market’s weakening. According to the bank’s analysis, employment, working hours, and income growth rates have returned to levels seen during the pandemic era. 10. Mizuho predicts the Fed will cut interest rates at its September meeting, with a 25 basis point reduction being the baseline scenario. A larger 50 basis point drop is more likely if August inflation falls below expectations.