Stephen Stanley, an economist at Santander Bank, pointed out that Federal Reserve Chairman Powell emphasized the importance of employment data to future monetary policy at the Jackson Hole conference. If the August employment data released on September 6 is strong, it may dispel the Fed's plan to cut interest rates by 50 basis points next month. Powell and other Fed officials have recently expressed concerns about the cooling of the labor market, so the August employment data will become crucial, even more critical than the August core CPI data. Investors need to pay close attention to the upcoming data to determine the direction of the market.
If the employment data in August is very good, then the next step of the Federal Reserve is very likely not to cut interest rates!
