Sparta Capital: Powell's speech can be interpreted as a 50 basis point rate cut in September

ChainCatcher news, according to Jinshi reports, Peter Cardillo, chief market economist at Spartan Capital Securities, stated that Powell holds a dovish stance, indicating that there is enough room to address any potential risks. I think this is a key point. What he means is that if the labor market continues to weaken, we might see a 50 basis point rate cut in September instead of 25 basis points.

"Now is the time for policy adjustment; we do not seek nor welcome further cooling of the labor market." This is another key point that suggests a 50 basis point rate cut in September. He seems to be responding to the significant adjustments made to the non-farm data a few days ago. Today, Powell appeared relatively dovish, and we saw the market respond accordingly. I believe we will have two rate cuts this year, totaling 75 basis points, especially if the August non-farm employment report shows further weakness.