The markets have just received the clearest signal so far: the President of the Federal Reserve, Powell, says there will be a rate cut in September, almost certainly by 25 basis points.
His statements in Jackson Hole left little room for doubt, setting the stage for a change in U.S. monetary policy that traders were anticipating.
But Powell also laid down a tough line: don't expect a cascade of cuts. The Fed will act cautiously, with inflation driven by tariffs still at play.
There may be relief ahead, but the road forward will not be completely clear: the balance of risks remains fragile.
