Europe is set for a mixed open, with EUROSTOXX 50 futures down 0.2% and FTSE futures up 0.2% amid little top-tier data for the region.
Powell’s address could move markets significantly or turn out to be over-hyped. After all, his colleagues on Thursday already alluded to a rate cut in September, voicing support for a “slow and methodical” approach.
Taken together with surveys showing the U.S. economy still growing at a healthy pace, markets slightly pared back the chance of an outsized half-point cut in September to 24%, from 38% a day earlier.
A quarter-point cut is fully priced in.
Regardless of the size of the reduction, Democrats will be happy to see the Fed finally kick-starting its easing cycle before the presidential election in November .
Vice President Kamala Harris just formally accepted her party’s nomination on the last day of the Democratic National Convention.