As soon as Powell pronounced two key words, the markets moved strongly.
First, the Fed is open to changing the interest rate once this year.
The second is that the current interest rate is close to being neutral.
Although Powell did not mention that interest rates were above their neutral level,
But the market sees it that way.
Therefore, although a reduction is expected,
This time, Powell mentioned it explicitly and publicly.
Which means we will be waiting for an interest rate cut at the next Federal Reserve meeting, perhaps, or the day after.
