Fed's September Rate Cut Signals Awaited Amid Economic Data Releases
According to BlockBeats, the market has fully priced in a rate cut by the Federal Reserve in September. However, a key question for the Federal Open Market Committee (FOMC) meeting on July 30-31 is how clearly the FOMC will signal this move. Economists, including Anna Wong, believe that the communication from the July meeting will only provide a preliminary hint of a rate cut in September. Federal Reserve Chair Jerome Powell is expected to indicate that a rate cut is possible if the data evolves as anticipated. The main reason for this cautious approach is the significant amount of data yet to be released before the FOMC meeting on September 17-18, including two inflation and employment reports, which could show considerable changes. The best time to clearly signal a September rate cut would be during Powell's speech at the Jackson Hole central bank symposium at the end of August, by which time he will have an additional month of employment and inflation data.Economists' expectations for the July 30-31 FOMC meeting are that, despite calls from many Wall Street analysts for a rate cut, the FOMC will unanimously decide to keep rates unchanged at 5.25%-5.50%. Since the June FOMC meeting, inflation data has been encouraging, while economic activity data has been somewhat concerning. Overall, the committee is likely to view the balance of risks between its two goals—price stability and full employment—as roughly equal.