Spartan Capital: Powell's speech can be interpreted as a 50 basis point rate cut in September

Peter Cardillo, chief market economist at Spartan Capital Securities, said that Powell took a dovish stance and said there was enough room to deal with any risks that might be faced, which I think is a key point. What he meant was that if the labor market continues to weaken, we might cut interest rates by 50 basis points in September instead of 25 basis points. "It's time for policy adjustments, and we do not seek or welcome further cooling of labor market conditions." This is another key point that tells us that there will be a 50 basis point rate cut in September. He seemed to be responding to the sharp adjustment of non-farm data in the previous few days. Powell was more dovish today, and we saw the market respond accordingly. I think we will have two rate cuts this year, a total of 75 basis points, especially if the August non-farm payrolls report shows further weakness.