Jay Powell said a rate cut in September is possible but depends on upcoming jobs

Wall Street is charging full speed toward a September rate ￰0￱ a couple of economic reports could crash that fantasy into a ￰1￱ Reserve chair Jay Powell gave the greenlight for a possible rate ￰2￱ he also warned that it all hinges on whether jobs and inflation numbers ￰3￱ said the current high borrowing costs are now pushing too hard on the labor ￰4￱ that, he claimed, could justify cutting rates as early as ￰5￱ was all traders needed to ￰6￱ stocks ￰7￱ yields ￰8￱ traders immediately priced in a 75% chance that the Fed trims its main rate by a quarter point in its next ￰9￱ current federal funds rate sits between 4.25% and 4.5%, but the market’s already guessing more cuts will follow deep into ￰10￱ brace for CPI and jobs data to decide September cut But that bet could die ￰11￱ hinted, not ￰12￱ several people inside and around the Fed aren’t ￰13￱ Fed is stuck between its two legal responsibilities, keeping employment strong and prices ￰14￱ admitted it’s not looking good on either side.

July’s jobs report showed hiring slowing way ￰15￱ data came in after the Fed’s last ￰16￱ spooked officials, but the 4.2% unemployment rate helped ease some of the ￰17￱ problem is, if that starts rising, the story changes. Meanwhile, the inflation side of things is tangled in Trump’s economic ￰18￱ new tariffs on foreign goods have triggered a heated debate inside the ￰19￱ believe the price surge will ￰20￱ think it could ￰21￱ say the worst impact will hit after they run out of pre-tariff ￰22￱ prices in July ran at a 2.7% annual ￰23￱ ideal, but not totally off the ￰24￱ Fed’s preferred metric, the personal consumption expenditures price index, showed a 2.6% increase in June, above the 2% ￰25￱ tried to calm that with one line: “We will not allow a one-time increase in the price level to become an ongoing inflation problem.” That’s the tightrope the Fed is ￰26￱ reports dropping in September, the August jobs report on the 5th and the CPI on the 11th, will be ￰27￱ Gapen at Morgan Stanley said Powell’s tone was soft, but not soft enough to guarantee a cut.

“It does not definitively say the Fed will cut in September, but it comes about as close as it can given the data between now and then,” he ￰28￱ split deepens as Trump slams central bank ahead of vote While the market debates, the Fed itself is splitting down the ￰29￱ Musalem, who runs the ￰30￱ Fed and votes this year, said inflation still looks too sticky. “There is a possibility, not the base case, that there could be some persistence,” he told Reuters after Powell’s ￰31￱ Fed president Susan Collins also doesn’t think the decision’s ￰32￱ told Bloomberg, “It’s not a done deal in terms of what we do with the next ￰33￱ we’re going to get more data between now and then.” Jeff Schmid, who leads the Kansas City Fed, thinks the labor market’s still strong ￰34￱ Goolsbee from the Chicago Fed isn’t so sure.

He’s worried about lingering inflation, especially in ￰35￱ of them vote on rates, and clearly, not everyone’s on the same ￰36￱ the Fed board itself, cracks are ￰37￱ the last vote in July, Michelle Bowman and Christopher Waller, both sitting governors and possible successors to Powell, voted for a quarter-point cut. That’s the first time two governors didn’t back the chair on rates since ￰38￱ of this is happening while Donald Trump, now back in the White House, is openly attacking the central bank. He’s called Powell a “numbskull” and a “moron” who’s always “too late,” and demanded a massive cut down to just 1%. Trump’s pick to fill the board seat left by Adriana Kugler, Stephen Miran, is expected to vote for a cut too, if confirmed in time by the ￰39￱ your project in front of crypto’s top minds?

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