Fed Chair Powell will speak at 12:35 PM ET. The chair is speaking at the greater Providence Chamber of Commerce. The luncheon is on the economic outlook.
The Fed cut rates by 25 basis points last Wednesday. Powell said after the cut that:
The rate cut was a “risk management” move: to guard against rising downside risks to employment while inflation remains above target.
There is a shift in how the Fed is viewing its dual mandate (inflation & employment): the balance of risks is more even than before. The risk to employment (from further cooling or weakening) is greater than it was; while the risk of inflation running persistently high has lessened a bit (though still very much present).
The Fed is not on a preset course. Future policy steps (rate cuts or otherwise) will depend heavily on incoming data, how inflation evolves, labor market developments, and external risks.
I would not expect a change from those themes.
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