@leowrld
Powell cools expectations after Fed rate cut
The Fed lowered rates to 4%. Powell called it a “risk management” step and not a start of an easing cycle.
He warned inflation remains high, QT ends Dec 1, and Trump’s tariffs are adding temporary price growth. AI-related job shifts may influence policy, while overall inflation excluding tariffs is close to 2%.
December cut odds: down to 71%.