How does Wall Street view Powell's turn? Is it time to discuss a 50 basis point rate cut in September?
Wall Street generally believes that Powell's speech has opened the door for a rate cut in September. The key to the size of the rate cut will be the August non-farm payrolls. If the labor market continues to weaken, the Fed may cut rates by 50 basis points or even 75 basis points.
Powell's "turn" has led the market to expect four interest rate cuts this year, but the Fed has only three meetings left.
The August employment data released on September 6th will serve as a catalyst for the Federal Reserve to cut interest rates by 50 basis points at the next meeting. Powell also mentioned, "the timing and magnitude of the rate cut will depend on future data." The market is closely watching the latest trends in the employment market, as well as the final inflation data before the FOMC meeting on September 11th.
"Race ahead" of the US Federal Reserve's interest rate cut in September, investors flock to money market funds
Investors poured $37 billion into the money market fund in the week ended Wednesday, preparing for the Fed's interest rate cut in September.
Global forex market changes: How does the expectation of a Fed interest rate cut reshape the currency landscape?
This week, the forex market has experienced significant fluctuations due to multiple factors. The USD index has dropped sharply, reaching its lowest point in recent months, leading to the rise of other major currencies. Below is a detailed analysis of the trends of major currencies this week.
Here comes the full text! Powell sends a heavy interest rate cut signal. What did he really say? (Chinese-English comparison)
At 10 p.m. on the 23rd Beijing time, Fed Chairman Powell made a major statement at the Jackson Hole Global Central Bank Annual Meeting. During the meeting, Powell sent the clearest signal so far of a rate cut, stating that the time for policy adjustment has come. The timing and pace of interest rate cuts will depend on subsequent data, changes in outlook, and risk balance.
Local Fed Chair voices support for Powell's dovish speech: Cut interest rates! Cut interest rates! Cut interest rates!
During the Jackson Hole annual meeting, three local Federal Reserve presidents gave speeches, expressing support for Federal Reserve Chairman Powell. They believe that inflation is moving towards the 2% target and the economic environment does not need to tighten.