#Powell Insúa Rate Cuts from #Fed
Financial markets have reacted with euphoria to the speech by the president of the Federal Reserve, #JeromePowell , at the Jackson Hole symposium. The Dow Jones soared, while the cryptocurrency market rebounded strongly after Powell hinted at a possible easing of monetary policy.
Powell, in a speech more tepid than expected, stated that the "baseline outlook and the changing balance of risks may warrant an adjustment to our policy stance," a clear signal that the Fed is open to considering interest rate cuts.
The Balance of Risks Changes: The central bank leader cited "radical changes" in fiscal, trade, and immigration policies, indicating that the balance between full employment and price stability is being readjusted.
Market Expectations Soar: The market's response was immediate. Investors now assign an approximately 91% probability to a quarter-point cut at the Fed's September meeting, according to the CME FedWatch tool.
