Jerome Powell’s speech at Jackson Hole gave traders the green light they’d been waiting for. He called the labor market a curious kind of balance, pointing out that both hiring demand and worker supply have slowed. Then came the kickerPowell said the Fed’s policy stance may need adjusting. Wall Street heard that as a strong hint at September cuts.
Markets wasted no time. The S&P 500 bounced back, the Nasdaq and Dow pushed higher, and tech stocksunder pressure for weekssuddenly looked attractive again. Bond yields tumbled as the 10-year slid toward 4.2%, while the dollar sank, giving emerging markets a lift. Even crypto rode the wave, with Bitcoin jumping over $115,000.
The catch? Inflation isn’t solved yet. Prices are still running hot, tariffs loom, and Powell knows cutting too early could backfire. For now, though, investors are treating this as the start of an easing cycle. The next few weeksespecially jobs and inflation datawill decide if Powell just kicked off a new chapter, or if this turns out to be another false start.
