The Wall Street Journal is gated, but here is the link of you can access it:
Fed Clears Path for September Interest Rate Cut
- Officials held rates steady, but made an important pivot by highlighting a more equal focus on employment and inflation goals
The gist of it is:
- While Powell and his colleagues didn’t commit to any such move when they held rates steady on Wednesday, he appeared to suggest during a news conference after the meeting that a cut was more likely than not.
- Powell suggested that at least one official had argued in favor of lowering rates at this week’s two-day meeting. “That was big, because if they were seriously talking about whether or not to go in July, September seems like a done deal unless we get something crazy between now and then,” said Jamie Patton, co-head of global rates at TCW, a Los Angeles-based asset manager.
'Unless we get something between now and then' is about rate. The Fed seems on a pre-determined path now. I'd suggest the only thing that could stop a September rate cut is misbehaviour from inflation data. Which can't be ruled out.
The Federal Open Market Committee (FOMC) meet on September 17 and 18.
