Institution: Powell's statement is equivalent to a rate cut a month in advance

ChainCatcher news, according to Jinshi reports, CFRA's Chief Investment Strategist Sam Stovall stated that Powell clearly indicated in his statement that inflation is declining, which is somewhat surprising. In addition, the Federal Reserve also believes that inflation will continue to decrease, and employment has not been adversely affected.

Powell wants the market to know that the Federal Reserve is not behind the curve. By clearly indicating the possibility of a rate cut in September, Powell is essentially signaling a rate cut a month in advance. The timing of the first cut is clear, but the magnitude remains uncertain. I believe the Federal Reserve will not suddenly cut rates by 50 basis points. A slow and steady approach is what the Federal Reserve hopes to implement in the early stages of easing policy.