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Barclays: Powell's Hawkish Stance Unlikely to Change Despite Jobs Data
Summary: Barclays Bank stated on Friday that despite market expectations of a Fed rate cut in September, recent US employment data is unlikely to alter Fed Chair Jerome Powell's cautious approach to interest rates. The bank predicts only a 25 basis point cut in December and believes investors are overly optimistic about a September cut, misunderstanding ...
Barclays Bank stated on Friday that despite market expectations of a Fed rate cut in September, recent US employment data is unlikely to alter Fed Chair Jerome Powell's cautious approach to interest rates. The bank predicts only a 25 basis point cut in December and believes 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 remains slightly tight and the labor market is robust. Despite a slowdown in job growth in July and a 4.2% unemployment rate, Barclays sees no signs of a shift in stance from hawkish Fed officials. The decision on a September rate cut remains uncertain, with the bank looking to Powell's speech at the Jackson Hole conference for clues.
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Link: Barclays: Powell's Hawkish Stance Unlikely to Change Despite Jobs Data [Copy]
