#Powell opens up opportunities for easing – but it’s not yet time to celebrate

In a statement after the October meeting, Chairman Jerome Powell left investors both hopeful and anxious. He acknowledged that the Fed is facing a level of uncertainty that is "very high" due to a lack of official economic data, while internal divisions remain regarding the direction for December. Nonetheless, Powell hinted that core inflation – excluding the impact of tariffs – is "not far from the 2% target," implying that the space for easing is gradually opening up.

The weakening labor market and the slowdown in job growth further reinforce the view that the tightening cycle may be nearing its end. However, Powell cautioned that the Fed will act cautiously, avoiding overreactions to temporary shocks.

Notably, he expressed optimism about the prospects of artificial intelligence – in stark contrast to the previous dotcom bubble – as many AI companies are actually turning a profit.

👉 The Fed may be preparing for a turning point, but Powell still wants everyone to "not rush to celebrate."