Michael Reid, an economist at RBC Capital Markets, indicates that if the US unemployment rate reaches a critical point of 4.4%, a 50 basis point interest rate cut becomes more likely. However, if the unemployment rate declines and job growth consistently stays above a monthly average of 100,000, the Federal Reserve (Fed) may adopt a cautious approach towards substantial interest rate cuts. Particularly, given the proximity to the US presidential election, the Fed might exercise prudence in avoiding being perceived as favoring one candidate by manipulating the economy through interest rate adjustments. Currently, futures markets anticipate the Fed to conduct its first 25 basis point interest rate cut this month, with a projected cumulative interest rate cut of 1 percentage point for the entire year. Additionally, it is expected that there will be further instances of 25 basis point interest rate cuts in 2025.