Powell Did It

Jackson Hole just completed! Let’s review what Powell shared!

📍 Powell just hinted that rate cuts might come as early as September.

Yup. You read that right. After months of playing it cool, Powell finally cracked the door open to cutting interest rates again.

Here’s the TLDR of what he said during his big speech in Wyoming:

🔥 “The balance of risks appears to be shifting.”

Translation: The labor market, which has been solid all year, might be softening. Not collapsing just cooling. And that gives the Fed more room to cut rates without risking runaway inflation.

Powell called it a “curious kind of balance” where both demand and supply for workers are slowing. And if layoffs spike suddenly? The Fed wants to be ahead of it, not behind.

📉 The market cheered

Investors loved it. Stocks pushed higher, bond yields slipped, and traders ramped up their bets that we’ll see a rate cut in September.

This comes after a string of disappointing payroll revisions earlier this month, so Powell’s shift is basically a green light for cautious optimism at least for now.

🤔 But… it’s not all fireworks and champagne

Powell didn’t promise a series of cuts. In fact, he warned about the risk of tariff-driven inflation and reminded everyone that a one-time price spike doesn’t mean the Fed will panic.

He also hinted that the “neutral rate”, the Goldilocks level that neither slows nor stimulates the economy, might be higher than we thought. This is also something they mentioned in the recent FOMC minutes.

That means we might not go back to zero rates anytime soon. This ain’t 2020. For business, it will be good if they can set the current rate as long term neutral rates to give more certainty

🏛️ Meanwhile, the political drama continues…

Trump is still pushing the Fed to cut harder and faster. There’s noise about firing Fed governors and replacing Powell himself. And Powell made it very clear once again that the Fed does not make decisions based on politics.

💡 So what does this mean for us as investors?

In simple terms:

1. Rate cuts could be back on the table. Risk assets (like stocks) tend to do well in this environment.

2. But we’re not out of the woods. Inflation, tariffs, labor softness . It’s a weird mix.

3. Volatility is still on the menu. Don’t assume smooth sailing into year end.

If you're a trader, stay nimble. If you're an investor, stay balanced.

And if you're like me ( keeping some spare cash ready) make sure that cash isn’t just sitting idle.

I parked some of mine in Longbridge’s Cash Plus and tested their 12% promo. Not a gimmick. It actually worked. I earned over SGD180 just by letting my cash sit there for 90 days.

🟩 Want your idle cash to work too?

Here’s what you get with the Longbridge promo:
• ⚡ 6 % per year interest booster for 90 days
• 📈 Free stocks worth up to SGD800
• 💎 Lifetime zero commission for SG, US and HK stocks
• 🆓 Zero platform fees for the first 90 days

Sign up with my link for even more:
• ⚡ Extra 6 % booster = 12 % total
• 🎁 Extra SGD18 cash coupon with min. $2,000 deposit

🔑 Use code: UI7YXGF0
⏰ Ends 31 Aug 2025 at 11.59PM

Stay ready. Market’s about to get interesting again 👀

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.