Fed megaphone: Surging unemployment rate may garner broader support for 50bp rate cut

"Fed's megaphone" Nick Timiraos said Friday is the last day before Fed officials enter the pre-meeting blackout period. Fed's Williams and Fed governors Waller are scheduled to speak after the release of the employment report, which is the final opportunity to set expectations for the upcoming meeting. With the rise of the economy and the slowdown in inflation, it is more reasonable for the Fed to lower the Interest Rate from the current 5.3% to around 4.5%.
If there are no signs that the weakness in July's employment will persist into August, some Federal Reserve officials may resist a 50 basis point rate cut. But officials who held an open attitude towards a rate cut at the July meeting may support a 50 basis point rate cut in September if the unemployment rate jumps again, and employment further slows, they will receive broader support.