Powell’s remarks at Jackson Hole were a clear dovish shift. By flagging rising downside risks to employment, he’s signalling that the Fed is prepared to pivot from a singular inflation focus to a more balanced stance. The adoption of a flexible inflation-targeting framework reinforces that message, effectively giving policymakers more room to cut without being boxed in by the old “make-up” approach.
From a trading perspective, the market’s reaction was justified—equities and crypto ripping higher as September cuts are now seen as a 90% probability, with two reductions priced in by year-end. The real question is whether this momentum can sustain. If inflation cools further, the Fed has cover to ease and risk assets should continue to outperform. But if inflation stays sticky, the market may have run ahead of itself and repricing could get sharp.
Personally, I’m treating this as a tradable bullish setup in the near term, but with tight risk management—Powell has opened the door, but the data will decide how wide it swings.
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- DebbyLily·2025-08-25Absolutely insightful analysis! [Great] 🌟LikeReport
- Yaomao·2025-08-25奇妙的见解！这超级有帮助！[Great]LikeReport