According to data from Jinshi, Powell has repeatedly stated this week that the unemployment rate is the best indicator of economic health. The unemployment rate in June was 4.1%, which has changed little over the past year, while the inflation rate is further from the Federal Reserve's target. Most policymakers see no reason to adjust interest rates.
Powell refused to commit to a rate cut in September, as Thursday's inflation data exceeded expectations, casting a shadow over the prospect of a rate cut. The U.S. Bureau of Labor Statistics will release July unemployment data on Friday, and the Federal Reserve is unlikely to cut rates in the absence of deterioration in the labor market; an increase in the unemployment rate is necessary.
