đšđ„ POWELL UNLEASHES RATE CUT WAVE: "LABOR MARKET IN TROUBLE" đŁđ°
The markets just erupted after Federal Reserve Chair Jerome Powell dropped a bombshell at the National Association for Business Economics meeting in Philadelphia đïž â signaling that more rate cuts are coming as Americaâs labor market starts to crack. â ïžđ
Powell didnât mince words:
> âThe labor market has weakened â layoffs are rising, hiring is slowing, and confidence is slipping.â đŹ
With that, Wall Street heard it loud and clear â the Fed is gearing up for at least two more 0.25% cuts before 2025 ends đŠâïž.
đŒ THE SIGNAL BEHIND THE SPEECH
Behind Powellâs calm tone lies a storm brewing:
đ Layoffs are climbing, while job openings keep vanishing.
đ Businesses report itâs getting easier to hire â a sign demand is fading.
đĄ AI-driven sectors show bursting productivity, but the rest of the economy feels hollow.
Add to that a federal shutdown delay in data, and the Fed is steering through economic fog â relying more on intuition than hard numbers. đ”âđ«
đ„ INFLATION STILL LINGERS â BUT RELIEF AHEAD?
Powell acknowledged that inflation remains sticky above the 2% target đŻ, partly thanks to the tariff turmoil from U.S.-China tensions. But he hinted relief could be coming as âtemporary price pressures fade.â
Translation? đ The Fed believes the inflation beast đ may finally be losing strength â giving room to ease policy further without losing credibility.
đŁ MARKET EXPECTS DOUBLE CUTS AHEAD
Traders are now fully pricing in 25 bps cuts in both October and December â a dovish one-two punch đ„ to rescue the cooling economy.
Powellâs message was clear:
> The Fed will âact as needed to support employmentâ, even if inflation hasnât fully cooled yet.
This sets up a massive pivot moment for 2025 â where the Fedâs focus shifts from fighting inflation to saving jobs and stabilizing growth.
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