The article discusses the implications of rising inflation targets and neutral interest rates on the pace of Federal Reserve interest rate cuts and how this might affect market reactions regarding risk assets and asset allocation strategies.

Article Summary:

1. **Powell's Mention of Rising Neutral Interest Rates Alters Market Expectations:**
   Powell acknowledges that even if inflation does not drop to the 2% target, rate cuts may commence, leading the market to anticipate that the federal funds rate might not return to the pre-tightening low-interest era, compelling an upward reevaluation of both inflation and neutral interest rates.