Powell's Speech Interpretation: 50 Basis Points Cut Expected in September
Publication Time:2024-08-23 22:41:09
Peter Cardillo, the Chief Market Economist at Sparton Capital Securities, stated that Federal Reserve Chairman Powell's latest remarks indicate a dovish stance, suggesting there is enough room to address potential risks. Cardillo believes that Powell's comments imply that if the labor market continues to weaken, the cut in September could be as high as 50 basis points instead of the usual 25 basis points. He said, 'It's time for policy adjustment; we do not seek or welcome further deterioration in the labor market conditions.' This is seen as Powell's response to the recent significant adjustments in the non-farm payroll data. Cardillo further pointed out that Powell's dovish attitude has led to a positive market reaction. Based on the current economic situation and market expectations, he believes there might be two rate cuts this year totaling 75 basis points, especially if the August non-farm employment report shows further weakness.
Rate Cut Expectations
Economic Outlook
Powell's Speech
September Action