Dovish

Dovish means favoring easier monetary policy to support growth or employment. In simple terms, a dovish central bank or policymaker is more willing to lower interest rates or avoid raising them. Dovish language is important because it can make investors expect cheaper borrowing and easier financial conditions. This can support stocks, but it may also raise concerns if inflation is still high. For example, if a Fed official says inflation is cooling and rate cuts may be possible, that is a dovish message. Dovish does not mean ignoring inflation. It usually means the policymaker is more concerned about slowing growth, jobs, or financial stress.