JPMorgan says Fed rhetoric ‘inching toward’ rate cut

JPMorgan’s Chief U.S. Economist Michael Feroli says Fed Chair Jerome Powell’s testimony before the Senate Banking Committee built on the “upbeat characterization of the economy” seen in last week’s FOMC minutes and noted that Powell, who previously had spoken of a labor market coming into “better balance,” today said the labor market “appears to be fully back in balance.” As with the FOMC meeting minutes, Powell’s rhetoric today “continued to move toward preparing the market for a cut in rates later this year,” the economist tells investors.