almost all of the 107 analysts surveyed by Reuters believe that the Federal Reserve will cut interest rates by 25 basis points on September 17, as the weakness in the job market outweighs the impact of inflation risks. Most analysts expect further rate cuts in the next quarter. Stagnant job growth in August, coupled with a significant downward revision of employment data for the past 12 months up to March, has prompted many economists to lower their expectations and believe that the Fed may implement more rate cuts than previously expected. The market has fully priced in the rate cut in September, with three rate cuts expected this year, compared to just two a few weeks ago. Michael Gapen, Chief U.S. Analyst at Morgan Stanley, said: "There is now four consecutive months of evidence showing a slowdown in labor demand at the Fed, and this trend seems more sustainable... In short, current inflation levels should be temporarily ignored in favor of supporting the job market through easing policies. However, we believe the likelihood of a 25 basis point rate cut in September is higher than a larger rate cut."