Powell faces unprecedented pressure on the eve of GDP and employment data release
Internet reports that amid a complex background of intensified political pressure, changes in trade policies and conflicting economic signals, Federal Reserve Chairman Powell and his colleagues will enter an interest-rate meeting next week. The decision coincides with a rare data-intensive week-the U.S. government will release GDP, employment reports and the Federal Reserve's core inflation indicators in succession. Although the market is widely expected to hold back again, this series of data may reshape the policy path. Economists predict that the annualized GDP growth rate of the United States in the second quarter announced next Wednesday is expected to reach 2.4%(a significant improvement from the 0.5% contraction in the first quarter), but this is mainly due to the sharp narrowing of the trade deficit. The July non-agricultural report released on Friday is expected to confirm that companies are becoming cautious in hiring. After a surge in employment in the education sector in June pushed up data, new jobs are expected to slow down this month and the unemployment rate may rise slightly to 4.2%. The U.S. government's June personal income and expenditure report is expected to show that the Federal Reserve's preferred core inflation indicator accelerated slightly month-on-month, indicating that tariffs are only gradually being passed on to consumers.
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