Powell’s comments seem to have allayed to some extent fears that the interest rate cut would be pushed away to November traders are now eyeing a rate cut as early as September.
In its previous guidance, the committee had said that it will take into account the cumulative rate hikes, and the lags with which they impacted economic activities and inflation. While the rate action has been largely factored in by market participants, the forward guidance on rate trajectory is what will matter more to them.