The Fed chair's latest comments signal a notable shift in risk assessment. Powell acknowledged that employment downside risks have escalated, prompting a recalibration of the central bank's policy stance. The message is clear: continued policy adjustments in upcoming meetings aim to achieve dual objectives—bringing the labor market back to equilibrium while keeping inflation pressures under control. This pivot could reshape market expectations for rate trajectory in coming months, directly impacting risk asset valuations across traditional and digital markets.