ATTENTION: POWELL OPENS THE DOOR TO INTEREST RATE CUT 💵💰
The President of the Federal Reserve of the United States (Fed), Jerome Powell, raised during his inaugural speech in Jackson Hole, the possibility of a rate cut in September, due to "changing risks," particularly in the North American labor market. Despite the caution in his statements, the market took the news with euphoria, assuming a reduction in rates.
The Fed Chairman stated that "while the labor market seems to be in balance, it is a curious balance resulting from a marked slowdown in both the supply and demand for workers." It is an "unusual situation" that suggests that "downside risks for employment are increasing" and, if they do, "they could do so quickly in the form of a considerable increase in layoffs and a rise in unemployment."
