Overview

• The revised statement removes references to a persistently low‑rate environment and scraps the 2020 'strategy of compensation,' returning to flexible inflation objectives.
• Powell said the Fed stands ready to act forcefully to keep longer‑term inflation expectations well anchored.
• He left the door open to policy easing, citing cooling labor conditions and lingering inflation risks that make the outlook data‑dependent.
• Powell warned that downside risks to jobs are increasing and noted that trade and immigration policies are altering labor supply and demand in ways that are hard to classify as cyclical or structural.
• Mexico’s INPC rose to 3.49% year over year in early August and Q2 GDP grew 0.6% quarter on quarter, while Banxico’s rate stands at 7.75% with board members divided on the pace of further cuts.