Japan Bank Managing $1.9 Trillion Announces: “The Fed Is Cornered” – Here’s What Will Happen

Mizuho Bank stated that the August US nonfarm payrolls report clearly revealed the weakening of the labor ￰0￱ to the report, employment, working hours, and income growth rates have fallen back to pandemic-era ￰1￱ bank stated that regardless of inflation's trajectory, the Fed is almost certain to cut interest rates at its September ￰2￱ a 25 basis point cut is seen as the baseline scenario, a 50 basis point cut is more likely if August inflation falls below ￰3￱ News: Analyst Warned: “Miners May Be Forced to Sell Bitcoin!” - Explained the Reason According to Mizuho, the Fed's previous inflation forecasts have been “disappointed by reality,” and its 2026 unemployment rate target is also in ￰4￱ bank argued that the Fed was being too pessimistic about inflation and too optimistic about the labor ￰5￱ Fed is expected to enter a sustained interest rate reduction cycle in the coming period, bringing interest rates to a “neutral” level of around 3% by March ￰6￱ possibility of the new Fed chair increasing stimulus and lowering interest rates to as low as 2% is prominent.

However, Mizuho noted that the biggest risk is a resurgence of inflation, in which scenario at least some stimulus could be withdrawn by 2027. *This is not investment ￰7￱ Reading: Japan Bank Managing $1.9 Trillion Announces: “The Fed Is Cornered” – Here’s What Will Happen