Analyst: Powell Maintains Tone, Prepares Market for Rate Cut

BlockBeats News, October 15th: Spartan Capital Securities Chief Market Economist Peter Cardillo said, "I don't think Powell has changed his tune. On one hand, he says the economic foundation is solid, but at the same time he also points out weaknesses. What he is doing is preparing the market for a series of rate cuts, but not necessarily in sequence. His words indicate that he will cut rates by 25 basis points at the end of this month, and then the Fed will assess the situation. If the labor market continues to weaken, leading to job losses, then he may be preparing for a significant 50 basis points rate cut in December. He is preparing the market for rate cuts, but he also does not want the market to think that rate cuts are inevitable. He is using the weakness in the labor market as a hedge." (FX678)