Powell faces unprecedented pressure on the eve of GDP and employment data release

2025-07-27 18:04:49 Primitive Reading

　against the backdrop of escalating political pressure, changing trade policies, and conflicting economic signals, Federal Reserve Chairman Powell and his colleagues will enter a rate decision meeting next week. This decision comes in a rare week of data-intensive releases - the US government will consecutively release GDP, employment reports, and the Fed's core inflation index. Although the market generally expects the Fed to once again stay put, this series of data may reshape the policy path. Economists predict that the US second-quarter GDP annualized growth rate, to be released next Wednesday, is expected to reach 2.4% (a significant improvement from the first quarter's 0.5% contraction), but this is mainly due to a sharp narrowing of the trade deficit. The July non-farm payroll report, to be released on Friday, is expected to confirm a cautious trend in business hiring. Following a sharp increase in education industry employment data in June, new job additions this month are expected to slow down, with the unemployment rate possibly rising slightly to 4.2%. The US government's June personal income and spending report is expected to show a slight acceleration in the Fed's preferred core inflation index, indicating that tariffs are gradually being passed on to consumers.

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