Powell Says It's Time to Cut
Fed Chair Jerome Powell hinted at everything but saying 'we’re cutting rates in September' during his speech at the Jackson Hole Economic Symposium on Friday.
While Powell didn’t nail down a specific timeline for the rate cuts, he did express confidence that the economy is heading toward the Fed’s 2% inflation goal.
As of Friday, traders are already placing bets on a half-point rate cut in September.
What’s on the table for September, according to John Velis, a strategist at BNY Mellon, is whether we'll see a 25 basis point cut or a 50 basis point one—that’s still up for debate.
Powell’s remarks have turned the spotlight on the next monthly US labor report, coming out on Sept. 6. The latest jobs data came in weaker than expected, and if the next report follows suit, Velis suggests a 50 basis point cut could be on the table.
How do you think these potential rate cuts will influence your investment strategy?
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