September Fed Rate Cut Is Now a “Go,” Say Barclays and BNP After Powell Speech

Powell signals labor market risks could push Fed toward September rate ￰0￱ revise forecasts, now expecting cuts in both September and ￰1￱ price in 87% chance of Fed easing at next FOMC ￰2￱ Wall Street brokerages are rapidly adjusting their forecasts for ￰3￱ policy after Federal Reserve Chair Jerome Powell signaled rising risks in the labor ￰4￱ remarks at the Jackson Hole symposium show the central bank’s focus may now shift to protecting ￰5￱ on Friday, Powell said the Fed’s restrictive policy stance has placed the economy at a “curious kind of balance” where both hiring demand and labor supply have ￰6￱ warned that this equilibrium carried the risk of sudden decline through layoffs and higher unemployment.

Related: All Eyes on Powell: The Three Scenarios for the Fed’s Speech and What They Mean for Crypto “This unusual situation suggests that downside risks to employment are rising,” Powell stated, noting that such risks could emerge ￰7￱ explained that the Fed’s dual mandate, managing both inflation and employment, was increasingly difficult to balance as …