While Powell didn’t specify the size or path of the reductions, his comments point to an imminent shift from the current two-decade high rates. This announcement comes as inflation shows progress, and markets now focus on incoming labor market data. Treasury yields and the dollar fell, while stocks rose following Powell's remarks.
“Markets need to digest this speech and remind themselves they — and the Fed — are still data dependent,” Jack McIntyre, portfolio manager at Brandywine Global Investment Management." – Bloomberg
