David McNamara: Federal Reserve rate decision hinges on US payrolls
Surveys suggests that the US economy is still adding jobs, albeit at a more moderate pace
With rate futures broadly settled following the late summer re-pricing in August, this week’s US payrolls data remains the key pivot point as the Fed embarks on its rate-cutting cycle.
While bets on a 50 bps cut in September have been pared back by markets in recent weeks, there still remains an outside chance that the Fed could decide on a larger cut if the payroll data deteriorates further in August.
