The Fed's stance on monetary policy just got a bit clearer. According to Bowman's recent comments, the current interest rate environment is sitting at 'moderately restrictive' levels—basically signaling that borrowing costs remain elevated compared to historical norms, but they're not in panic-mode territory yet.

Here's what matters for market watchers: inflation pressures are actually cooling down. The reason? Tariff effects are starting to fade. Earlier this year, tariff uncertainties had everyone nervous about sustained price increases, but those headwinds appear to be weakening now.

This shift could have real implications for capital markets. If the Fed's restrictive stance softens over coming quarters and inflation stays under control, we might see a different trading landscape emerge. Right now, the message seems measured—inflation's not going wild, but the central bank isn't rushing to reverse course either.