BlockBeats news, August 15, Barclays Bank stated on Friday that despite market bets on a potential rate cut by the Federal Reserve in September, recent U.S. employment data is unlikely to change Fed Chairman Jerome Powell's cautious stance on interest rates. The bank expects only a 25 basis point cut in December this year and believes that investors are overly optimistic about a September cut, misunderstanding the Fed's view on the strength of the labor market.
Powell recently stated that monetary policy is 'slightly tight' and the labor market is 'robust.' Even though July's job growth has slowed and the unemployment rate is at 4.2%, Barclays has not seen signs of a change in the hawkish attitude of Fed officials. Whether to cut rates in September is still 'up in the air,' and the bank will pay attention to speeches at the Jackson Hole meeting for clues.