<p>The U.S. July non-farm payroll report showed weakness, intensifying concerns that the Fed cut rates too late. However, market participants do not expect a 50 basis point rate cut by the Fed in September, as such a large rate cut may be seen as a warning signal. Many economists monitoring the Fed believe that the U.S. employment data is not severe enough to warrant emergency action by the Fed. Joseph Lavorgna, Chief Economist at SMBC Nikko Securities, said, &#34;A 50 basis point rate cut by the Fed would cause panic, as market expectations for a significant rate cut are too premature.&#34;</p>

<p>The weak US non-farm payroll report in July has raised concerns in the market about the Fed cutting interest rates too late. However, market participants do not expect the Fed to cut rates by 50 basis points in September, as this could cause panic. Economists believe that the current US employment data has not reached a level that requires urgent action</p>

Market participants: If the Federal Reserve significantly cuts interest rates, it may trigger panic