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Fed Rates Hold Post-Powell Decline, Labor-Heavy Docket Amidst Dual Mandate Focus

STIR
  • Fed Funds implied rates hold yesterday’s sizeable decline seen on Powell’s press conference where the language and tone provided sufficient dovish assurances that the bar to cuts in the near future is low, and he explicitly noted that easing "could be on the table as soon as September". See the MNI Fed Review here.
  • Cumulative cuts from 5.33% effective: 29.5bp Sept, 48bp Nov, 73bp Dec and 92bp Jan.
  • Today sees potential driving forces from a slew of labor market releases along with final PMIs and the ISM manufacturing survey for Jul, all with an eye on tomorrow’s NFP report. Preview here.

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