POWELL POWER

Unsurprisingly, the Fed left rates unchanged but put markets on notice that a mid-September cut is highly likely. The Fed is now, finally, concerned not just about inflation, which they described almost benignly as just “somewhat elevated,” but more importantly, about labor markets which worryingly are slowly and steadily deteriorating. Expect a 25bps cut on 9/18/24 and hopefully 50bps on 12/18/24. See Powell Cut. Cut Powell cut. Cut, cut, cut.