Please stay tuned for important disclosure information at the conclusion of this episode.

Hello, hello and welcome to the Morning Filter. I'm Susan Jubinsky with Morning Star. Every Monday before market open, Morningstar Chief U.S. market strategist Dave Sikara, and I sit down to talk about what investors should have on their radars for the week,

some new Morning Star research, and a few stock ideas.

Now, programming note for our audience,

we will not be streaming a new episode of the Morning Filter next Monday, September 1st,

due to the Labor Day holiday.

But Dave and I will be back with a new episode on Monday, September 8th.

All right, good morning, Dave.

Let's start off this week with your takeaways on Fed Chair Powell's comments from Jackson Hole last week,

as well as how likely it is that the Fed will cut rates at its September meeting in a few weeks.

Well, first of all I can say is, I am glad I'm not in his shoes. I think he's in a

position where he's, you know, damned if he does, damned if he doesn't. When I look through the

numbers here, you know, the last payrolls report and the restatements lower show that the labor

market is a lot weaker than what people were previously thinking. And our own expectation here is that the rate of

economic growth here in the U.S. is going to slow for at least the next three to four quarters,

which, of course, will pressure the labor market even further, which, you know, that tells me he

should be at the point where they should be cutting rates at this point. Now, however, on the other

hand, and I'm sounding like an economist here,

you know, inflation is ticking higher and it's poised to head even further higher, you know,

over the next couple of quarters. We'll just have the impact from the tariffs, you know,

rolling through and get incorporated into the metrics, which actually means, you know, he should

probably be raising rates in order to reduce inflation. Either way, in my mind, I think he's going to get blamed for either the weak economy if he doesn't cut, if he doesn't cut Fed Fund rate, and he's going to get blamed, you know, for higher inflation, you know, if he do gets those cuts, you know, put through. So we'll see what happens, you know, as far as what's the market

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