On September 18 next week, the Federal Reserve System is expected to cut interest rates by 25 basis points. There are several key factors behind this decision:

1. The inflation rate has shown a downward trend;

2. Employment in the non-agricultural sector has improved; 3. The Consumer Price Index (CPI) is also in line with expectations. All these indicate that the US economy remains strong. In order to further promote economic growth, stimulate consumption and expand employment channels, it is particularly necessary to take interest rate cuts in September. However, in the absence of signs of recession in the economy, the possibility of a direct and substantial interest rate cut of 50 basis points is relatively small. Therefore, when the interest rate is adjusted for the first time, it is very likely that a 25 basis point reduction will be chosen.