Powell signals 'dove', probability of Fed rate cut in September rises to 85.2%
Fed Chair Jerome Powell stated that the 'changing' economic risks have provided a clearer basis for easing monetary policy. This statement reinforces the view that Powell is leaning towards the 'dove' side in the FOMC, thus paving the way for the possibility of the Fed cutting rates by 25 basis points in the September meeting.
According to CME FedWatch Tool data, following Powell's remarks, the probability of the Fed lowering rates in September has risen to 85.2% (compared to 75% previously), while the likelihood of keeping rates unchanged is only 14.8%.