Powell: September rate cut 'may be on the agenda'

On 1 August, Fed Chairman Jerome Powell held a press conference after the FOMC meeting, where he said that the Fed's employment and inflation risks are entering a better balance. Second quarter inflation data increased the Fed's confidence.

The Fed no longer needs to focus 100% on inflation. If the labour market deteriorates or inflation falls rapidly, the Fed is ready to respond.

A rate cut in September "may be on the agenda", although the Fed has not yet made any decision on the September meeting. A rate cut will depend on improved confidence in inflation, and could occur in September if inflation falls as expected and the labour market remains stable.