There’s a ‘growing risk’ Fed will have to cut interest rates by 50 basis points in December to ‘catch up’ to a sagging labor market, Oxford Economics says

• The chances the Federal Reserve will cut interest rates by 50 basis points in December are growing, according to Oxford Economics. The June jobs report showed strong headline numbers, but the underlying data pointed to a weakening labor market. If it cratered unexpectedly the Fed would be forced into such a large rate cut.   

Interest rate cuts will be a crystal ball. 

Amid a cloudy outlook, they’ll reveal either good economic fortune or a downturn. 

On the one hand...