Fed Chair Powell hints at rate cuts while inflation hits 90% probability - traders betting big

Jerome Powell just delivered the kind of mixed signals that make dating apps look straightforward. At Jackson Hole, the Fed Chair dangled the possibility of September rate cuts like a carrot, while simultaneously warning that inflation risks remain "tilted to the upside" - which is Fed-speak for "don't get too excited, folks."

The market's response was immediate and predictable: traders pushed rate cut probabilities above 90%, essentially treating Powell's cautious words like a green light at a drag race. It's the financial equivalent of hearing "maybe" and interpreting it as "absolutely yes....