Fed's Powell made an important statement:

1⃣️It's time for the Fed to adjust monetary policy (lower interest rates)

2⃣️The Fed will do everything it can to support a strong labor market

3⃣️The timing and pace of rate cuts depend on macroeconomic data and risk balance

4⃣️Inflation is steadily moving toward the 2% target

5⃣️Significant progress has been made in achieving price stability without a significant increase in unemployment

6⃣️The risks to the Fed's dual mission have shifted - inflation risks have fallen, but the risk of falling employment has risen

⚫️The Fed does not seek or welcome further cooling of labor market conditions

⚫️The economy continues to grow steadily

The market expects the Fed to cut interest rates by 100 basis points by the end of 2024