Bank of America: Powell's speech did not endorse a 50 basis point rate cut

ChainCatcher news, according to Jinshi reports, U.S. Bank economists stated in a report regarding Powell's speech at the Jackson Hole meeting on Friday that the Federal Reserve's concern about the cooling of the U.S. labor market still calls for a 25 basis point rate cut in September, rather than 50 basis points.

Bank of America stated that although Powell's tone was relatively dovish, "we do not believe he opened the door wider for a 50 basis point cut." "On the contrary, he implicitly supports a gradual reduction in rates." If the risk of recession increases, larger cuts will occur. "A very weak employment report could bring this about, but the decline in unemployment claims suggests this should not be the baseline scenario."