Let's summarize Powell's speech and understand where we're headed
Powell signaled that an interest rate cut is near, perhaps in September, emphasized that it is time to adjust monetary policy, and stressed the importance of the employment report to be released on September 6.
This report could determine the size of the rate cut. Powell noted, as we wrote to you, that: "While inflation risks have decreased, employment risks have increased."
He also clarified that the pace of interest rate cuts will depend on upcoming economic data.
The market is reacting with moderate gains and awaits the employment report to be released on September 6.