Fed Chair Powell Signals Imminent Rate Cut at Jackson Hole Meeting

According to Jinshi Data, Federal Reserve Chairman Jerome Powell delivered a clear signal for an upcoming interest rate cut during the Jackson Hole meeting, confirming that a rate reduction in September is now highly anticipated. Powell highlighted the increasing downside risks to employment and stressed that it is time for policy adjustments, with the Federal Reserve committed to supporting the labor market.While Powell refrained from detailing the extent and speed of the potential rate cuts, the market is currently expecting a 25 basis point reduction in September. However, if the non-agricultural employment data shows further weakness, a 50 basis point cut could also be on the table.The market responded positively to Powell's early announcement, alleviating concerns that the Fed might be "behind the curve." Wall Street analysts believe that the Fed is prepared to take swift action if the labor market continues to deteriorate.