Powell going dovish at Jackson Hole is a major pivot.
Key takeaways for me:
• Risk balance shift → Fed is now openly worried about jobs more than inflation.
• Policy framework → More flexibility = more room to cut without being boxed in by the “make-up” strategy.
• Market reaction → Equities + crypto spiked instantly, showing how much positioning was leaning bearish before this.
Traders are now pricing 90%+ chance of a September cut (vs 75% before the speech), and two cuts by year-end are fully priced.
👉 The big question: Is this just relief rally fuel, or the start of a bigger cyclical rebound?
QQQ is already responding, but risk-on sentiment could spread much wider if the Fed follows through.
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