Mizuho Bank stated that the August non-farm payroll report in the United States further confirmed the weakening trend in the labor market, with employment, hours worked, and income growth falling back to pandemic levels. Regardless of inflation, the Federal Reserve is almost certain to cut interest rates at the September meeting. A 25 basis point rate cut is almost a foregone conclusion, but if August inflation is weaker than expected, a 50 basis point cut is more likely. The Fed's previous inflation forecasts have been "slapped in the face" by reality, and its 2026 unemployment rate forecast faces the risk of not being met. They were overly pessimistic about inflation and overly optimistic about the labor market. It is expected that the Fed will launch a sustained easing cycle, aiming to lower interest rates to what it considers a "neutral level" by March 2026, around 3%. The new Fed chairman is likely to further ramp up stimulus measures, lowering rates to near 2%. However, the risk is that if inflation picks up again, at least some of the stimulus measures will be withdrawn by 2027.