WILL POWELL CUT RATES?

Jerome Powell, the Federal Reserve Chair, is likely to cut interest rates cautiously due to persistent inflation pressures. Here's what's shaping his decision :

- Inflation: Currently at 2.6%, still above the Fed's 2% target. Powell wants to see sustained progress on inflation before making any significant changes.

- Economic Growth: The US economy is showing resilience, with steady consumer demand and robust GDP growth, reducing the urgency for policy easing.

- Labor Market: The tight labor market is contributing to wage growth and inflationary pressure, making the Fed cautious about cutting rates.

Potential Rate Cuts:

- September Rate Cut: Powell has signaled a potential rate cut in September, with the market expecting a 25-basis-point move.

Future Cuts: The Fed might cut rates further if economic data confirms current trends, but Powell emphasizes the importance of data-driven decisions.

Key Considerations:

- Data Dependence: Powell stresses that rate cuts will be based on incoming economic data, particularly inflation and labor market indicators.

- Cautious Approach: The Fed aims to avoid reigniting inflationary pressures and will proceed with caution when adjusting interest rates .#BinanceAlphaAlert #IsraelIranConflict #USNationalDebt #Fed $BTC