Powell signals neutral policy stance as non tariff driven inflation fades

Fed Chair Powell emphasizes a neutral policy stance, indicating that the policy rate is now within a plausible range of neutral. He expresses confidence in the current economic conditions, highlighting easing inflation pressures, particularly in service sectors. Powell indicates that tariffs primarily drive recent goods inflation and suggests that inflation would revert to the Fed's 2% target without these tariffs. With the likelihood of rate cuts increasing for the upcoming meetings, traders should remain vigilant regarding market reactions to upcoming data as the Fed appears ready to act based on evolving economic indicators.