The Fed will cut rates 25bp next week and leave the door open for more. It is reasonable to argue that they need to cut 50bp. If that’s what they should do but won’t, adjust your forecasts down accordingly. Key Data The employment report for August 2019 revealed a slowing albeit arguably solid labor market in the U.S.Nonfarm payrolls grew by a somewhat softer than expected 130k, but that number was inflated by the addition of 25k temporary Census workers. Both June and July experienced modest downward revisions. Including Census workers, job gains are running at a 156k average monthly pace over the past three months. ... (full story)