Barclays: Powell's Hawkish Stance Will Not be Changed by Jobs Data
BlockBeats News, August 15th - Barclays Bank stated on Friday that despite market expectations of a Fed rate cut in September, recent US employment data is unlikely to change Fed Chair 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 too optimistic about a September rate cut, misunderstanding the Fed's view on the strength of the labor market.
Powell recently stated that monetary policy is "only slightly restrictive" and the labor market is "robust." Even with the slowdown in July job growth and a 4.2% unemployment rate, Barclays has not seen any signs of a shift in stance from hawkish Fed officials. The decision on a September rate cut is still "up in the air," and the bank will focus on speeches at the Jackson Hole conference for clues.
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