Once Powell mentioned the two key words, the markets moved strongly.

The first is that the Fed is open to changing the interest rate once this year.

And the second is that the current interest rate is close to neutral.

Although Powell did not mention that the interest rate is above its neutral level,

the market sees it this way.

Therefore, although a cut is expected,

this time Powell mentioned it explicitly and publicly.

This means we will be watching for a rate cut in the upcoming Fed meeting or possibly the one after.