The Federal Reserve remains on an easing path, but the word "further" indicates the pace is gradual, not abrupt.

UBS research report states that the Federal Reserve is still on a path of further easing, with Powell downplaying the need for tightening caused by rising energy prices, emphasizing that policy often ignores oil price shocks when inflation expectations are under control. Although core inflation needs to continue declining before easing is achieved, a 50 basis point rate cut is expected within the year. Since government bond yields are higher than pre-conflict levels, there is still room for movement, with year-end targets for 2-year and 10-year government bond yields at 3.25% and 3.75%, respectively. Source: Jin10.