Fed Ears: Powell's Attitude Toward the Job Market This Week May Signal Future Policy Directions

"Federal Reserve Whisperer" Nick Timiraos's latest article: "This week, a rate cut by the Federal Reserve is basically a done deal, and investors will be closely watching whether Powell will further advance his recent shift in stance. Investors will pay close attention to one key piece of information: whether Powell and his colleagues will set the number of rate cuts for this year at three, or maintain the expectation from June? Last month, in a highly anticipated speech, Powell expressed greater concern about the labor market than some of his colleagues did about inflation at the time. The question now is: Will Powell further strengthen this concern after the release of the weak August nonfarm payrolls report? If he does, it will confirm the market's expectation of "continued rate cuts in the future meetings," but it may also require overcoming the concerns of some colleagues - those who have doubts about the "neutral interest rate level" and whether rates should be adjusted to the neutral level so quickly."