This morning, Fed Chairman Jerome Powell delivered a highly anticipated speech at Jackson Hole. While Powell refrained from declaring victory over inflation, his remarks suggested a significant shift in the Federal Reserve's focus – from aggressive inflation control to supporting broader economic growth. This shift indicates a growing confidence that inflation is sufficiently under control to allow for the start of a rate easing cycle.

The easing cycle could begin as soon as the September meeting. However, uncertainties remain regarding the pace of rate cuts and the eventual neutral rate the Fed aims to achieve.