According to Odaily, some Federal Reserve observers anticipate that Chairman Jerome Powell will not make specific predictions for September. Instead, he is expected to emphasize that the Fed will now pay closer attention to employment issues as the job market weakens. The Federal Reserve has a dual mandate to maintain price stability and full employment. With the unemployment rate rising, the latter has become increasingly important, putting more pressure on the Fed to take action. In July, the U.S. unemployment rate rose to 4.3%, the highest level since October 2021.
Luke Tilley, a bond portfolio manager at Wilmington Trust, expects Powell to discuss the natural rate of interest, also known as the 'neutral rate.' This metric helps the Federal Reserve understand the actual restrictiveness of its monetary policy.