Wolfe increasingly convinced Fed will start cutting interest rates in September
Wolfe Research analysts doubled down on their prediction of a Federal Reserve policy shift, citing recent comments from Chair Jerome Powell in his testimony to the Senate Banking Committee and economic data.
During the testimony, Powell noted that"labor market conditions have cooled considerably compared to where they were two years ago," and the labor market appears to be fully back in balance. He added that this is no longer an overheated economy. While acknowledging mixed signals from various employment surveys, Wolfe highlights July's payroll report as a tipping point.
Key upcoming inflation data points like CPI , PPI , and PCE Deflator will be crucial for the Fed's decision-making, according to Wolfe.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.
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