Analyst: Powell's speech shows that the threshold for a 50bp rate cut is low

Some analysts said that Federal Reserve Chairman Powell's speech at the Jackson Hole conference this year was very dovish. He finalized the possibility of a rate cut in September and even hinted that he was open to a 50 basis point cut. The frequent mention of a cooling labor market suggests that the full employment part of the Fed's mission may have a greater weight in Powell's current decision-making. Analysts' baseline expectation is that the Fed will cut interest rates by 50 basis points in September because they expect the unemployment rate to rise further in August. On the contrary, if the unemployment rate stabilizes at 4.3%, it will be a difficult decision. Powell's remarks indicate that he is ready for a major action even if his colleagues are not ready. However, if the unemployment rate falls, the Fed may choose to cut interest rates by 25 basis points. (Jinshi)