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🇺🇸 Why are we growing? Powell signaled the market

The Fed has effectively acknowledged: the balance of risks is shifting towards an economic slowdown and labor market. This opened the door for expectations of an imminent rate cut.

Key points from Powell's speech:

— A decrease in employment and GDP slowdown strengthen the arguments for easing monetary policy.

— The key interest rate is already close to neutral, meaning the Fed can act more cautiously.

— Inflation remains above the target (PCE 2.6%, core 2.9%), but the risks related to employment outweigh.

— Tariffs could theoretically 'heat up' inflation, but labor market pressure is stronger.

📊 The market reads this as a signal: the rate could go down faster than expected. This is what is pushing assets up.