Institution: The Federal Reserve cuts interest rates by 50BP to stabilize the labor market.

On September 19, Jinshi data reported that the Federal Reserve lowered the Intrerest Rate by 50 basis points, while reminding the market that such a significant interest rate cut would not become the norm. The updated dot plot indicates that interest rates will gradually decline in the future, indicating that the Federal Reserve believes that a 50 basis point interest rate cut is a preemptive measure sufficient to stabilize the labor market. Economic forecasts still expect the actual GDP to rise at a steady pace of 2% this year. Institutional analysis points out, 'In our opinion, a 50 basis point interest rate cut is the right move as the labor market is clearly weakening. If the economy is indeed heading for a soft landing, the unemployment rate may stabilize at 4.4% as predicted by the Federal Reserve, and we believe this interest rate cut increases the likelihood of this outcome.'