Steve Englander, global head of FX research and macro strategy at Standard Chartered, said the market reaction, with the dollar weakening and bond yields slightly lower, was broadly correct. Instead of saying "yes, we're going to start the easing cycle with three 50 basis point cuts," what Powell did was focus heavily on the fact that an inflation target was just around the corner. They were worried about the labour market and said it didn't have to weaken further. So without giving a timeline, the remarks hinted at opening the door to a 50 basis point cut at some point. We still don't think a 50 basis point rate cut is the first move, but if the labor market continues to weaken, that could come soon.