Federal Reserve Signals Definitive Pivot Toward Easing Cycle

Federal Reserve Chair Jerome Powell explicitly stated that 'the time has come for policy to adjust,' marking a decisive shift in the central bank's forward guidance. The pivot reflects a recalibration of risk assessment, moving away from a primary focus on inflation toward preventing further cooling in the labor market. This guidance effectively confirms a September rate cut, with the pace and depth of the cycle now contingent on incoming data rather than the necessity of restrictive conditions.