Institution: The magnitude of the Fed's interest rate cut is not key; the fragile balance in the labor market is what matters most.

Jin10 data September 15th, investment management company Payden & Rygel stated that whether the Fed will cut interest rates by 25 basis points or 50 basis points this week is merely a “minor disagreement.” Their analysts pointed out that the key issue is that the current labor market is in a fragile balance, which is completely different from the situation in 2024. They stated: “To avoid a collapse of this balance, the Fed should 'move forward with rate cuts as soon as possible,' as suggested by Governor Waller in a recent speech.” The company's economic outlook for the next 12-15 months indicates that the federal funds rate should gradually approach 3%. Currently, the target range for the federal funds rate set by the Fed is 4.25%-4.50%.