The Fed is dovish!

The latest forecast from the agency: The Fed is expected to cut interest rates by nearly 100 basis points before the end of the year!

At 10:00 pm on August 23, Powell's speech contained ten points, which are summarized as follows:

1. The time for policy adjustment has come.

2. I am more confident that inflation will return to 2%.

3. We do not seek or welcome further cooling of the labor market.

4. The timing and pace of interest rate cuts will depend on the balance of data, outlook and risks.

6. Confidence in the return of inflation to 2% has increased.

7. We will do everything we can to support a strong labor market while making further progress in achieving price stability.

8. Supply constraints have normalized. The balance of risks between our two tasks has changed.

9. Our goal is to restore price stability while maintaining a strong labor market and avoiding a sharp rise in unemployment, which is a characteristic of the anti-inflation period when inflation expectations were less stable in the early days. Although the task is not yet completed, we have made great progress towards this goal.

10. "The Federal Open Market Committee has not retreated from its responsibilities, and our actions have powerfully demonstrated our commitment to restoring price stability," he said. "An important conclusion from recent experience is that well-anchored inflation expectations, combined with forceful central bank actions, can promote disinflation without requiring slacking off."