Powell’s Dilemma: Cut Rates or Wait Longer? At the most recent FOMC press conference, Powell made it clear that decisions would be based on the "totality of the evidence", including: • August labor data (expected in early September) • Updated inflation figures • Market reactions to ongoing tariffs His concern remains that cutting too early might reignite inflation, while delaying could inflict unnecessary damage to employment. That said, if upcoming data continues to show labor weakness, a cut in September becomes hard to avoid, even with inflation above target.
