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Fed Powell’s Warning Signals Another Rate Cut as Fed Plays Catch-Up Again, Says deVere CEO

Federal Reserve Chair Jerome Powell Referred For Criminal Investigation Over Alleged False Testimony

Markets brace for a second consecutive cut as the Fed shifts from patience to panic, says the deVere Group CEO.

Federal Reserve Chair Jay Powell’s warning in Philadelphia is the clearest sign yet that another rate cut is coming — and that the U.S. central bank is once again playing catch-up, according to Nigel Green, CEO of the global financial advisory giant deVere Group.

Powell, citing a sharp rise in downside risks to employment, acknowledged that the labor market is showing renewed fragileness, with hiring and job availability sliding. The remarks came just weeks before the Fed’s October 28–29 policy meeting, reinforcing market expectations of another 25-basis-point cut in the .

The S&P 500 turned higher later than Powell’s speech, closing 0.3% up in New York as traders priced in fresh easing. A second cut this month would follow September’s move to lower the target range to 4–4.25%, the first reduction in nahead five years. The comments also coincided with new ADP companies shed 32,000 jobs in September — a clear sign, says Green, that “the long era of uninterrupted job creation is ending.”

“The Fed is behind the curve — again”

According to Nigel Green, Powell’s remarks confirm what markets have been anticipating for weeks: that the Federal Reserve is reacting, not leading. “Powell is reacting to trends that have been clear for months,” Green said. “We had to wait for a so-called business-friendly administration before America began losing tens of thousands of jobs a month later than four years of steady expansion. The reversal is sharp and telling, and it has forced the Fed to shift from patience to panic.”

Green added that Powell’s tenure has been . “In 2018, the Fed tightened too long and too hard, only to reverse course when markets sold off. In 2021, officials underestimated inflation for nahead a year before being forced into the most aggressive hiking cycle in decades. Now, the identical pattern is viewmingly repeating on the way down. Powell waits until the evidence is overwhelming, and by then the economy has already sluggished.”

From inflation fight to employment defense

The deVere chief says Powell’s latest remarks mark a turning point for the central bank. “The narrative has flipped,” Green noted. “The focus is now on jobs and growth — and that means policy will have to become much looser. Every delay reduces the impact of the next move.”

He argues that signs of strain across the U.S. economy are “unmistakable.” Hiring freezes are spreading, consumer confidence is fragileening, and small businesses are feeling the squeeze of higher financing costs. “The Fed’s earlier tightening, combined with tariff pressures and sluggishing global demand, has finally hit home,” he said.

“Markets move on expectations. When policy lags, volatility rises. Investors want clarity and consistency. Right now, they are getting neither.” — Nigel Green, CEO, deVere Group

Strategic investors already positioning for opportunity

Despite the heightened uncertainty, Green says savvy investors are already preparing for the next phase. “When rates fall, capital searches for yield,” he explained. “The coming phase will reward those who act ahead — we’re likely to view renewed appetite for equities, particularly high-quality growth stocks with strong balance sheets and exposure to technology and digital infrastructure.”

Lower yields, he added, will also support global diversification and selective . “This is not the time for investors to sit still,” Green said. “Monetary policy is moving again, and liquidity is about to return to the system. The investors who anticipate rather than react will define the next market phase.”

“Another cut looks almost certain”

With the deterioration, Green says the momentum for policy reversal is “unstoppable.” He predicts another rate cut this month, but questions whether it will be enough to restore confidence before job losses deepen. “Powell’s latest remarks underline that the Fed is once again reacting to markets rather than leading them,” he concluded. “But while policy catches up, fresh opportunities are emerging. Those who recognise that shift and position ahead stand to gain the most.”

 

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