"Fed's mouthpiece": Waller did not explicitly mention the extent of the rate cut. Pay attention to the "if" in the speech
According to Odaily Planet Daily, "Fed mouthpiece" Nick Timiraos commented on Powell's speech, stating that Powell did not explicitly mention a 25 or 50 basis point rate cut in his speech, but was inclined to support a 25 basis point cut as a starting point, while clearly reserving the option to "appropriately" accelerate the rate cut if "new data" shows further deterioration. Powell said: "Based on the evidence I see, I don't think the economy is in recession, nor is it necessarily headed for recession." We should note the "ifs" in his speech: "'If' the data indicates the need for a larger cut, then I would also support it. When inflation accelerated in 2022, I strongly advocated for earlier rate hikes, 'if' appropriate, I will support earlier rate cuts." "These decisions will be determined by new data." (Possibly not including today's data) "While I expect rate cuts to be cautious as the economy and employment continue to grow, against the backdrop of stable inflation, I stand ready to act quickly and support the economy if necessary."
