1. Policy Adjustment:
- "The time has come for Fed policy to adjust."
- Signals a shift in the Federal Reserve's approach.
2. Labor Market Support:
- The Fed "will do everything" to maintain a strong labor market.
- Emphasis on preventing further weakening in employment.
3. Inflation Confidence:
- Increased confidence that inflation is heading towards the 2% target.
- Inflation has significantly declined, aligning with the Fed's goals.
4. Changing Risk Balance:
- The balance of risks concerning Fed mandates has shifted, suggesting a new approach to economic management.
The Fed Pivot is Here 🚨
- Market Reaction:
- Markets surged sharply on this news, now less than 1% away from new all-time highs.
- The long-awaited Fed pivot, anticipated by markets for over a year, is now official.
Stay tuned as we cover all developments in real-time! 📈