The bottom line to the Powell speech, “The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
Emphasizing their shift in attention to the labor market, this was then followed by “We will do everything we can to support a strong labor market as we make further progress toward price stability…The current level of our policy rate gives us ample room to respond to any risks we may face, including the risk of unwelcome further weakening in labor market conditions.”
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