๐ฅPowellโs Bold Shift: The Fed Breaks Tradition as Market Turmoil Loomsโ
Just when hopes for a smooth economic landing were rising, Fed Chair Jerome Powell has shaken the markets. The Federal Reserve is abandoning its old playbook and preparing to unveil a new monetary policy frameworkโexpected as early as August or September.
Why the change?
Inflation is out of control, and the traditional tools have failed. Powell made it clear: โWe must respond more flexiblyโโthe global economic landscape has changed.
Whatโs coming:
The Fed will move away from traditional inflation targeting and instead tackle deep-rooted structural supply chain challenges.
For the first time, Powell admits low inflation no longer guarantees stability.
In 2025, expect a hawkish Fed overhaulโrate hikes could increase in frequency and scale, while cuts are likely off the table for the foreseeable future.
Investors, take note:
The Fed is becoming more aggressive. Quick, sharp policy changes are the new norm. Market volatility is set to spikeโdonโt cling to outdated expectations. The real shake-up is just beginning.
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