Analyst: Powell did not change the tone, preparing the market for interest rate cuts.

On October 15, Peter Cardillo, Chief Market Economist at Spartan Capital Securities, stated that he does not believe Powell has changed his tone. On one hand, he says the economic fundamentals are solid, but at the same time, he points out the presence of weakness. What he is doing is preparing the market for a series of interest rate cuts, but not necessarily in order. His remarks suggest that he will cut rates by 25 basis points at the end of this month, after which 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 cut of 50 basis points in December. He is getting the market ready for rate cuts, but he also does not want the market to think that a cut is inevitable. He is using the weakness in the labor market as a form of hedging. ( Jin10 )