Wall Street just got the message loud and clear.
In his latest speech at the NABE Summit in Philadelphia, Federal Reserve Chair Jerome Powell sent shockwaves through global markets, hinting at a major policy shift toward rate cuts. ⚡
Powell admitted:
> “We’re seeing softness in hiring, rising unemployment claims, and declining job confidence.”
📊 Why This Matters:
This single statement flipped market sentiment instantly — futures traders are now pricing in two 0.25% rate cuts before year-end as the Fed pivots from tightening to protecting growth.
🧠 What’s Brewing Behind the Scenes
📉 Job creation is slowing faster than expected.
🏢 Corporate layoffs are accelerating.
🤖 AI productivity is surging but not enough to offset the broader slowdown.
🏛️ With some federal data delayed by budget gridlock, the Fed is relying on forward signals rather than solid stats.
💹 Inflation: Sticky… but Fading
Powell noted inflation remains “somewhat elevated,” but it’s easing as supply pressures cool and tariff shocks unwind.
👉 Translation: The Fed sees the inflation storm fading — clearing space to cut rates without reigniting price spikes.
📈 Market Reaction
Traders expect one cut in October and another in December.
Stocks and crypto markets are buzzing as liquidity hopes rise.
The “higher for longer” era may be ending sooner than expected.
🛑 Bottom Line
Powell’s tone signals a strategic shift — from inflation control to economic defense.
The Fed isn’t just preparing for turbulence… it’s already steering the ship. 🕹️
🌐 The “cut-to-survive” phase has officially begun.
#PowellRemarks #MarketAlert #FedPivot #RateCuts #CryptoMarkets 🚀📊
