MacroEdge 7/31 Mid-Week Report: FOMC Hype Over, Labor Market Slowing in Focus, Cuts on the Horizon

In this mid-week report, we dive into the FOMC press release, focus on the evolving employment and volatility trends, and dive into the past at prior cutting cycles.

7/31 Mid-week Update, FOMC Closeout, Flash to the Past (@DonMiami3, MacroEdge Chief Economist)

Happy midweek and final day to the month of July all, 

As Summer continues to roll on, I find myself again on the road and am being kept plenty busy with the latest data, news, and narratives of the day. As we've continued to anticipate - Powell in his FOMC presser today made sure and teed up the September meeting as the *certain* option where the Fed will start its easing process. He stated that the likely outcome is a 25bps cut, which is what we saw in Canada and elsewhere in Europe, to not risk spooking markets with a larger magnitude cut. The Bank of Japan also continued its tightening process, raising its key policy rate to .25% in what will likely be its final move of this tightening cycle.