Macro Outlook for Next Week: July Core PCE Incoming, "Don’t Get Too Excited About Rate Cuts"

BlockBeats News, August 23 — For most of this month, Wall Street traders have been flocking to the stock and bond markets, betting that the Federal Reserve is finally ready to start cutting rates again. The only thing they were waiting for was the green light from Fed Chair Jerome Powell to sustain this rally. On Friday, they got their wish, as Powell took a dovish stance in his highly anticipated speech, sparking the biggest cross-market rally since April.

On Friday, Powell hinted that the Fed is prepared to shift its policy direction, mirroring the situation at last year’s Jackson Hole meeting. In his Jackson Hole speech, Powell opened the door for a rate cut in September, sending a clear signal that the Fed will cut rates by 25 basis points at the September meeting.

At 03:15 on Tuesday (UTC+8), 2026 FOMC voting member and Dallas Fed President Lorie Logan will deliver a speech and participate in a panel discussion at the 100th anniversary conference of the Bank of Mexico;

At 07:15 on Tuesday (UTC+8), permanent FOMC voting member and New York Fed President John Williams will deliver a keynote speech at the 100th anniversary conference of the Bank of Mexico;

At 00:45 on Thursday (UTC+8), 2027 FOMC voting member and Richmond Fed President Thomas Barkin will deliver a speech;

At 20:30 on Thursday (UTC+8), the revised annualized quarter-on-quarter U.S. Q2 real GDP data will be released;

At 20:30 on Friday (UTC+8), the U.S. July core PCE price index year-on-year, U.S. July personal spending month-on-month, and U.S. July core PCE price index month-on-month will be released;

At 21:45 on Friday (UTC+8), the U.S. August Chicago PMI will be released;

At 06:00 on Friday (UTC+8), Federal Reserve Governor Christopher Waller will deliver a speech on monetary policy;

At 22:00 on Friday (UTC+8), the final reading of the U.S. August University of Michigan Consumer Sentiment Index and the final reading of the U.S. August one-year inflation expectations will be released.