Federal Reserve observers anticipate that Powell will not make specific predictions for September

Odaily reports that some Federal Reserve observers predict that Powell will not make specific forecasts for September, but instead remind everyone that the Fed is now paying more attention to employment issues as the job market weakens. The Federal Reserve has a dual mandate to maintain price stability and full employment. As unemployment rates rise, the latter becomes increasingly important and puts more pressure on the Fed to act. In July, the US unemployment rate rose to 4.3%, which is the highest level since October 2021.

Luke Tilley, Wilmington Trust bond portfolio manager, expects Powell will discuss natural interest rates, also known as "neutral interest rates," which help the Fed understand its actual monetary policy constraints.