00:00So let's get into the Fed Chair Jerome Powell. So U.S. stocks actually bounced following a five-day
00:06slide on Jay Powell's remarks. The big question is, will we see this rate cut next month?
00:13And what are the markets actually pricing in? Yeah, a very good question. And the markets are
00:18really pricing in a 25 basis point, quarter point cut, fully priced in at the next meeting,
00:25which ends on the 17th of September. A couple of caveats there. We will see some more data before
00:31that meeting. We'll get three separate readings of the level of inflation in July. We will see the
00:36August jobs report. And Powell made a big deal of saying we are data dependent. So while this move
00:43is priced in, you know, there is a chance that we may not see it. But I think Powell most certainly
00:49opened the door to a rate cut. I think the big question becomes, what happens after that?
00:55Powell made a point of saying that policy right now with interest rates where they are at just
00:59over 4 percent is only modestly, that's his word, modestly restricted. So that signals that he
01:07doesn't see, you know, any great aggressive rate cuts coming, at least with the economy and the
01:12state it's in now. So I think that what that means is this three percentage point rate cut that
01:16Donald Trump would like to see is highly unlikely to materialize.
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