Don't expect too much!
Economists say: Powell will "play Tai Chi" again on Friday. Economists think the Fed will talk about a gradual rate cut plan starting in mid-September at the Jackson Hole meeting.
The meeting starting on Friday is different from the aggressive rate cut expected by the market. Powell's speech may give a general green light to future rate cuts. Some people think that there will be two 25 basis point cuts this year and one cut every quarter next year. But traders don't think so. Some people also expect multiple rate cuts to a certain level. Powell may ask everyone not to overreact to the data. The employment report at the beginning of the month caused a lot of discussion, but now the mood has subsided.
Powell may emphasize that the economy is still strong and hint at a 25 basis point cut in September.
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