đŸ”„ Market Recap: Powell’s Balancing Act


In his October 14 address at the National Association for Business Economics, Fed Chair Jerome Powell struck a careful tone — signaling confidence in the U.S. economy’s resilience while acknowledging cracks in the labor market.


📉 Key Takeaways:




Economy: “On a firmer footing,” but growth remains uneven.




Labor Market: Hiring and firing both at historic lows — a sign of business caution.




Inflation: Still above the 2% target, keeping the Fed alert.




Balance Sheet: Powell hinted that quantitative tightening may soon pause as liquidity tightens.




Policy Outlook: “No risk-free path” — rate decisions will stay data-dependent, made meeting by meeting.




💬 Market Reaction:

Powell’s remarks were interpreted as slightly dovish, fueling expectations of a modest rate cut later this quarter. Still, the tone was measured, prioritizing stability over speed.


🎯 The Big Question:

Can the U.S. economy stay strong amid soft hiring and higher borrowing costs?

Powell’s message was clear — the Fed is nearing the end of tightening, but flexibility remains the guiding principle.


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