Almost as notable as the things Powell said were the things he did not. Between now and September, Fedspeak should focus on keeping the Committee’s options open to a 50 bps cut in September.
Powell's Jackson Hole speech made clear that rate cuts will begin in September. Most notable what he did not say: "gradual." Powell is keeping the door open to a larger cut in September.
Bostic and Musalem, two members on the hawkish side of the Committee, joined the rest of the Committee in signalling an openness to rate cuts in September.
The Committee continues to react to the July jobs numbers.
Just a couple of reactions to the jobs data last week from Barkin and Goolsbee, both downplaying the jobs report.
