🚨 POWELL: NO RUSH TO CUT RATES
Fed Chair Jerome Powell made it clear — early easing is NOT the base case.
Key takeaways from the presser 👇
• Fed remains in “wait & see” mode
• Decisions will be meeting-by-meeting, fully data-dependent
• Tariff-driven inflation could peak this year, then fade
• Labor market > GDP inside the Fed’s decision framework
⚠️ Important nuance:
Powell left the door open to easing only if employment weakens materially. Until then, policy isn’t considered “overly restrictive” by most officials.
📊 Risk assessment update:
• Inflation risks: easing
• Employment risks: easing
• December projections point toward a more balanced economy, not emergency cuts
🔍 Bottom line:
No dovish pivot yet. The Fed needs clear labor market stress before cutting. Markets betting on fast easing may be early.