At the monetary policy meeting in the month, the Federal Reserve cut interest rates by more basis points than expected to prevent the U.S. labor market from cooling down too quickly. However, following the last meeting, multiple U.S. labor market data releases were stronger than anticipated, making the future path of the Federal Reserve's monetary policy unclear.

On the date, several Federal Reserve officials spoke on the policy path. From their latest statements, it is evident that multiple Fed officials hold the view that "future rate cuts will be cautious."

On the date, Dallas Federal Reserve Bank President Lorie Logan stated that due to the continued presence of various uncertainties in the economic environment, the Federal Reserve should remain cautious in cutting interest rates, and she supports a "gradual" approach to rate cuts. "As the Federal Reserve gradually reduces the policy interest rate, the U.S. inflation rate could fall to the Fed's target of %, and the labor market would not cool down too quickly," Logan said. "If the economy develops as I expect, then a strategy of gradually lowering the policy interest rate to a more normal or neutral level can manage risks and achieve the goals."

On the same day, James Bullard, President of the Federal Reserve Bank of Kansas City, expressed that he leans towards slowing the pace of rate cuts and adopting a "cautious and deliberate" approach to rate cuts, as inflation is returning to the Fed's target and the U.S. labor market is normalizing. "While I support reducing the restrictive nature of policy, I prefer to avoid significant volatility. Moderate adjustments to monetary policy by the Fed can help maintain economic growth, price stability, and full employment," Bullard stated.

Minneapolis Federal Reserve Bank President Neel Kashkari also predicted in a speech on the same day that the Federal Reserve may "moderately" cut interest rates in the coming months. Kashkari stated that signs of a softening labor market were the reason the Fed cut interest rates by a quarter point last month, and that there could be even smaller rate cuts at future monetary policy meetings.

Based on the latest statements from multiple Fed officials this week, the market currently expects the Fed to cut interest rates by several basis points at the upcoming monetary policy meeting. The CME FedWatch Tool shows that the market expects a rate cut by the Fed in the month with a probability of %, which is a percentage point lower than a week ago, while the likelihood of the Fed maintaining the status quo in the month has increased.

Wen Bin, Chief Economist at China Minsheng Bank, stated that the likelihood of the Federal Reserve cutting interest rates by additional basis points this year and a cumulative basis points next year has increased, with the overall magnitude of expected cuts weakening.