I would expect Powell to reaffirm the Fed's current policy stance, keeping the door open for a more aggressive tightening next month if need be. However, that will all come down to the data and there isn't anything else Fed policymakers or markets can do at the moment but wait for the numbers to be crunched before the FOMC meeting in September.
So, what are the key items to look out for next? As mentioned previously, the Fed put emphasis on labour market and inflation data. We already got the first taste of both in early August and we will run it back again next month in order to gauge whether a more hawkish Fed i.e. 75 bps rate hike is justified.
- 2 September - US August jobs report/non-farm payrolls*
- 13 September - US August CPI figures*
- 14 September - US August PPI figures
- 16 September - Univ. of Michigan September consumer sentiment
- 21 September - FOMC meeting decision*
