FHN Financial Economic Weekly
Chris Low, Sophia Kearney-Lederman, Will Compernole, and Mark Streiber
Not Quite a Pivot
This week, Jay Powell noted the risks to the Fed’s dual mandate are now balanced after an increase in the unemployment rate. He was setting up for a possible rate cut, and that was before we knew the CPI fell in June for the first time in four years. Powell is scheduled to make one more public appearance before the communications blackout next Friday. We think he will use the opportunity, this Monday, to tee up a possible rate cut at the July 31 Fed meeting.
