Powell just gave his strongest hint yet that rate cuts are coming, and investors are jubilant: ‘Stage is set for parabolic Q4’

Federal Reserve Chair Jerome Powell is not known for giving decisive hints. Still, on Tuesday he did something rare: He openly acknowledged the rising “downside risks to unemployment” in a clearly dovish signal that the central bank is preparing to ease monetary policy. Powell’s speech, delivered at an event for the National Association for Business Economics (NABE), was nominally about the Fed’s balance sheet. However, it concluded with a carefully placed shift in tone: The labor market is weakening fast ...