Investors look for more aggressive US rate cuts after weak jobs data

NEW YORK, Sept 5 (Reuters) – After a surprisingly weak U.S. payrolls report that underscored that the economy is slowing, investors see the need for accelerated monetary easing, including an increased chance of a jumbo interest rate cut this month.

Heading into Friday’s employment report, investors were already widely projecting the Federal Reserve to lower its benchmark interest rate by a standard quarter-point at its September 16-17 meeting, in what would be its first reduction in nine months. Fed Chair Jerome Powell had set the stage for such a cut in remarks last month that pointed to risks in the labor market.