📉 Powell signals: The Fed has entered a "neutral zone", a period of observation rather than action.

The recent FOMC meeting provided many signals indicating that the Fed is pausing its tightening cycle and moving into a "wait and see" phase.
Below are the highlights from Chairman Jerome Powell's speech 👇
• The interest rate is currently in a neutral zone — meaning the Fed is no longer leaning towards tightening or loosening too much.
• Some members want to pause before taking the next step, indicating that the Fed is also being cautious internally.
• Powell emphasized caution in the context of a volatile economy and labor market.
• The risk of the U.S. government shutdown could affect the December meeting, making it even harder for the Fed to make a clear decision.
• AI-related layoffs begin to emerge, putting pressure on the labor market — a key indicator that the Fed is paying special attention to.
• Spending on AI and data centers remains strong, less affected by interest rates, becoming a bright spot in the economy.
• Increased tariffs may push short-term inflation up by an additional 0.2–0.4 percentage points, creating new risks for price policy.
Overall, Powell's tone this time is noticeably softer — the Fed seems to have moved away from "rate hike mode" and shifted to a phase of observation, evaluating data.
The market is beginning to understand that the tightening cycle may have ended, but the "inflation war" is not necessarily over.