Analyst: Powell has not changed his tone, allowing the market to prepare for a rate cut

I don't think Mr. Powell has changed his tune, says Peter Cardillo, chief market economist at Spartan Capital Securities. While he says the economy is on solid footing, he also points to weakness. What he is doing is preparing the market for a series of rate cuts, but not necessarily in sequence. His words suggest he will cut rates by 25 basis points at the end of the month, and then the Fed will assess the situation. If the labour market continues to weaken, leading to job losses, then he may be preparing for a big 50 basis point cut in December. He is preparing the market for a rate cut, but he also doesn't want the market to think a rate cut is inevitable. He is using the weakness in the labour market as a hedge.