Fed Chair Powell Signals Possible 50 Bps Rate Cut in September, Citing Labor Market Cooling

게시됨: Aug 27, 2024 07:40
[SMM Steel Market Morning News: Powell Clearly States That the Time for Policy Adjustment Has Arrived, and a 50 Basis Point Rate Cut May Be Expected in September] According to Bloomberg Economics, the opening remarks of Federal Reserve Chairman Jerome Powell at this year's Jackson Hole Symposium were quite dovish. He clearly stated that there would be a rate cut in September – even expressing his openness to a 50 basis point cut. Powell repeatedly mentioned the cooling of the labor market, indicating that the full employment aspect of the Fed's dual mandate may weigh more heavily in its decision-making. The benchmark expectation of the agency is that the Fed will cut rates by 50 basis points in September, as we anticipate a further rise in the unemployment rate in August. If the unemployment rate stabilizes at 4.3%, this expectation will face greater uncertainty – Powell's remarks suggest that he favors a substantial rate hike, even if other Fed officials do not support such a move. If the unemployment rate declines, the Fed may opt for a 25 basis point rate cut instead.

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