Barclays: Powell's hawkish stance will not be changed by employment data

ChainCatcher news, Barclays Bank stated on Friday that despite market bets on the Federal Reserve possibly cutting rates in September, recent U.S. employment data is unlikely to change Fed Chairman 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 overly 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 a slowdown in job growth in July and an unemployment rate of 4.2%, Barclays has not seen signs of a shift in the stance of hawkish Fed officials. Whether to cut rates in September remains "up in the air," and the bank will be looking for clues in speeches at the Jackson Hole meeting.