by Wolf Richter
Wolf Street
For the Treasury market, Powell’s speech was a nothingburger. A Sep rate cut has been priced in since the Aug 2 jobs report.
Powell re-confirmed at his Jackson Hole speech on Friday that rate cuts are coming but didn’t mention “September.” He said, “The time has come for policy to adjust. The direction of travel is clear…”
But “the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
Powell presented a balanced message. There was no panic. The two sides of the Fed’s dual mandate (low inflation and full employment) have come roughly into balance.