USD flows: Powell Signs September

·       Time has come to adjust in September.  The Fed chair signaled that the time has come to adjust, which is not a big surprise given data and also the July FOMC minutes that signaled that the vast majority of members felt it would be appropriate to cut in September.  The key is 25bps or 50bps for September.  Powell did note that the timing and pace of rate cuts would be data dependent.  Fed Collins suggested a gradual and methodical approach, but Harker noted that more data would be needed to decide on 25bps or 50bps – Schmid not he is not ready yet to vote for a rate cut.  Open but more likely 25bps than 50bps.