JPMorgan Chase: Powell Did Not "Play Tai Chi" for October Rate Cut

Michael Feroli, chief US economist at JPMorgan Chase, said Fed chairperson Jerome Powell's latest speech "cemented expectations of further rate cuts, starting at the next meeting on October 28-29". Mr. Feroli noted that markets were already fairly convinced the Fed was leaning towards easing policy but Mr. Powell's language left little room for ambiguity. "While there is little doubt that the Fed will cut rates at the next meeting, today's speech is a strong confirmation of that expectation," he said. Powell's remarks further strengthened investors' belief that the Federal Reserve is preparing to cut interest rates again after a series of softening inflation and labor market data, solidifying market bets for a rate cut at the end of October.