Can Powell Really Bring 1% in Cuts Home by Christmas?
The Fed’s easing campaign clearly starts in September, but a full percentage point in three meetings would require at least one of 50 basis points. That seems a cut too far.
One-percenter?
Source: Bloomberg
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A change in monetary policy can never be a done deal a month in advance. That said, a rate cut at the next Federal Open Market Committee meeting now does indeed look a done deal. New shreds of supporting evidence include a revision to the non-farm payrolls data announced chaotically by the Bureau of Labor Statistics, which found that earlier estimates may have overstated employment by some 810,000 jobs; and from the minutes of the last FOMC meeting in July. They were about as clear-cut as a central bank can ever be: