Non-farm data is disappointing, CPI remains flat compared to last month and is below expectations. How should the Federal Reserve decide now? The Federal Reserve has always weighed decisions between non-farm data and CPI. Now, non-farm data performed poorly in June and July, fully exposing severe issues in the job market. Meanwhile, CPI did not rebound as expected, but instead fell below market expectations, and the impact of tariffs on prices was merely a one-time effect. In the face of such economic data, can Powell still hold his ground?
It’s about time to cut interest rates! A series of decisions by Powell make it hard not to suspect his political stance leans towards the Democratic Party. The continuous anomalies in non-farm data in June and July raise serious doubts about their authenticity. The economic situation has long sent strong signals for rate cuts, but the Federal Reserve has been hesitant, delaying interest rate cut plans until now, which undoubtedly brings more uncertainty and risk to the US economy.
