- The labour market is weakening "but not weak"
- As price pressures ease, officials need to be conscious of their mandate of maintaining full employment
The narrative now is that the Fed is slowly conforming to market expectations for a rate cut next month. I reckon Powell should reaffirm that at Jackson Hole next week. However, they're steering clear of saying that they will overdo it and go with a 50 bps cut. So, therein lies the risk of market pricing presently.
