The Federal Reserve's decision to cut interest rates for the third consecutive meeting marks a clear shift in strategy, according to Gina Bolvin of Bolvin Wealth Management.

In a recent note, Bolvin states the Fed is sending a message that it is "no longer just watching inflation—it's managing risk." This move reflects the central bank's "growing concern about the economy's underlying momentum."

While acknowledging that inflation has cooled, Bolvin explains the Fed is now giving greater weight to other headwinds, including:

• The delayed impact of previous policy actions (policy lags)
• Geopolitical uncertainty
• Tighter credit conditions

She characterizes the Fed's delicate balancing act as an attempt "to guide the economy to a soft landing without oversteering."

Looking ahead, Bolvin anticipates that rate cuts may continue, but only gradually and in a data-dependent manner. This suggests a cautious and reactive approach, where future policy moves will hinge on incoming economic indicators rather than a pre-set path.