Just a few days before the US payrolls report, data showed job openings unexpectedly increased, breaking a months-long downward trend that highlighted a gradual slowdown in labour demand.
Powell stated that there has been a "substantial" shift towards a more balanced labour market between supply and demand for workers. He continued to describe the job market as strong, but noted that it is cooling off appropriately.
Powell's comments this morning were more relevant to the direction of yields, as the Chair noted 'quite a bit of progress' on the US inflation front. Moreover, the risks are being characterised as more balanced as opposed to skewed towards the inflation side of the Fed's dual mandate.
The markets begun their reaction soon after Powell started speaking, when he started that the "the disinflation trend shows signs of resuming", following the bump in the road on the inflation path that we saw recently, which sparked fears on the Feds rate cut path.
Following Powell's speech, US interest rate futures slightly increased the chances of a Fed rate cut in September, from around 60% to 65%.
Powell stated that there has been a "substantial" shift towards a more balanced labour market between supply and demand for workers. He continued to describe the job market as strong, but noted that it is cooling off appropriately.
Powell's comments this morning were more relevant to the direction of yields, as the Chair noted 'quite a bit of progress' on the US inflation front. Moreover, the risks are being characterised as more balanced as opposed to skewed towards the inflation side of the Fed's dual mandate.
The markets begun their reaction soon after Powell started speaking, when he started that the "the disinflation trend shows signs of resuming", following the bump in the road on the inflation path that we saw recently, which sparked fears on the Feds rate cut path.
Following Powell's speech, US interest rate futures slightly increased the chances of a Fed rate cut in September, from around 60% to 65%.