{"content":"*Powell Signals Major Fed Policy Shift as Inflation Game Changes Just as markets were getting used to the idea of a soft landing, Fed Chair Jerome Powell has shaken things up. In a recent speech, Powell revealed that the Federal Reserve is preparing a new monetary policy framework, with a formal update expected as early as August or September. The reason? Inflation has become harder to predict, and the old rulebook no longer works. “We need a more flexible approach,” Powell said, emphasizing that global economic conditions have fundamentally shifted since the pandemic. *Here’s What’s Changing: - New Framework Incoming The Fed is revisiting how it sets interest rates, signaling a shift away from traditional inflation-targeting methods. Flexibility and structural issues—like persistent supply chain disruptions—are now in focus. -Rethinking Inflation For the first time in years, Powell made it clear: low unemployment won’t automatically trigger inflation concerns. He also acknowledged that predicting inflation today is much harder than before, and that long-term supply issues may continue to push prices higher. - Hawkish Turn in 2025 With three of the four new FOMC voting members leaning hawkish, the balance of power is about to shift. This suggests: 1.Higher odds of future rate hikes 2.Lower expectations for rate cuts 3.Greater overall market volatility *What It Means for Investors Powell’s tone suggests a clear break from the past. The Fed is preparing for a more unpredictable economic environment, and its policies may shift faster and more often than investors are used to. The takeaway? Volatility is back, and investors should brace for more reactive moves from the central bank. #PowellSpeech #FOMC‬⁩ ","images":["https://d2kdcqywr8ua22.cloudfront.net/uploadfile/article/blog/2025052025/05/18/7fc401d0fd78483eab1975e571f8695c.png"],"tags":[],"tradingPairs":[],"quotearticleid":0}