Former Fed Governor: If the Labor Market Does Not Deteriorate, the Fed May Not Cut Rates in September

According to a report by Jinse Finance, former Federal Reserve Governor Larry Meyer wrote after this week’s Fed policy meeting that Powell’s remarks imply that if things continue as they are now—including the important point that the labor market does not deteriorate—the FOMC is very likely to maintain its current stance in September. At the same time, Powell did not seem to rule out the possibility of a rate cut; as long as future data and outlook developments provide sufficient reason, the FOMC will take action to cut rates. (Jin10)