Powell stays tight-lipped about the rate cut magnitude, two Fed officials act as mouthpieces?
On Thursday (September 26), Federal Reserve Chairman Powell did not discuss monetary policy or economic outlook in his brief opening speech at the New York Fed.
The shocking truth: Since the epidemic, the USA economy has been incredibly strong! With the background of interest rate cuts, is a 'soft landing' just around the corner?
From the second quarter of 2020 to the end of 2023, the Gross Domestic Product of the usa has grown by an average of 5.5%; total domestic income has also significantly increased in recent years.
After the employment downturn, could usa's GDP face a substantial downward revision tonight?
The market generally expects that the final value of usa's second-quarter GDP will be slightly revised down from the previous 3% to 2.9%. Goldman sachs expects that due to the impact of downgrades in non-residential construction, service consumption, and equipment investment, the year-on-year GDP growth rate for the second quarter will decrease from 3.1% to 2.7%.
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Powell leads the Federal Reserve to significantly cut interest rates, firmly in control, not ruling out another one.
Forecasts show that most officials support lowering the benchmark interest rate by one percentage point or more this year. Analysts: Powell can make everyone except Bowman support him, which is a complete victory. In the week before the gathering in Washington this month, Federal Reserve officials still have different opinions on the speed of rate cuts. The economy has not sent out clear signals that would usually prompt the Fed to take proactive measures. But a series of clearly weak employment data, including the August employment report, led Chairman Powell to believe that the rate cut should be larger than usual to guard against rising risks in the labor market. When the Fed made its decision on September 18th, forecasts showed that most officials supported lowering rates this year.
