Federal Reserve Chair Powell gave a mostly green light for monetary policy easing in September. Noting that inflation remains elevated, Powell stated that “the balance of risks appears to be shifting.” …The implication of this observation is that easing is in view for monetary policy given the Fed’s dual mandate of maintaining both price stability and full employment. Markets expect a cut in September. Powell detailed an important point for the housing demand, that the labor market has avoided large job losses due to policy tightening and the economy has shown “resilience.” The Fed chair also indicated that inflation pressure is now in the data from tariffs, including a rise in goods prices. …Moreover, some of the pressure from tariffs is being relaxed as trade deals are arranged and de-escalations of some trade tensions are undertaken. Canada’s drop of retaliatory trade actions against the US is a good example.