Powell: “Time to Cut Interest Rates”

Powell speaks at Jackson Hole exactly as the market expected

• Time to cut interest rates

• Don't want the labor market to deteriorate further

• Inflation on track to 2%

• Economy slowing is clear

• Inflation risks down, economic risks up

• Timing and pace of rate cuts will depend on data

• Will try to support the economy without entering recession

Powell didn't mention 0.25% or 0.5% so August jobs data will be the decider.

Market thinks 65% FED cuts 0.25%, 35% FED cuts 0.5% after Powell's speech: