Powell may keep an open mind when he speaks this week.

August jobs data, due early next month, could tip Powell toward deeper rate cuts if they disappoint like July’s.

The reason for taking gradual action is that it gives you options, but the downside is that when things change, you no longer have that luxury.

Evidence that the labor market may be too slack should prompt officials to bring forward larger rate cuts, abandoning their long-preferred gradualism, said a handful of investment banks, including JPMorgan Chase & Co. and Wells Fargo & Co., as well as former Fed economists.