Fed watchers don't expect Powell to make specific September forecasts

Some Fed watchers expect Powell to refrain from making specific forecasts for September, instead reminding everyone that the Fed will now focus more on employment because the job market is weakening. The Fed has a dual mandate to maintain price stability and full employment. As unemployment rises, the latter becomes more important and puts more pressure on the Fed to act. In July, the U.S. unemployment rate rose to 4.3%, the highest level since October 2021. Luke Tilley, bond portfolio manager at Wilmington Trust, expects Powell to discuss the natural rate, also known as the "neutral rate," which helps the Fed understand how restrictive its monetary policy actually is.