Last night gave us three signals:

1. Interest Rate Cuts: Facing the pressure of a 6.5% unemployment rate and a 2.9% core PCE, they forcibly rallied the number of votes supporting two interest rate cuts in the dot plot from 5 people at the March meeting to 9 people, completely shattering the market's fantasy of four rate cuts this year. Only two cuts? If you think there's a bull market, dream on!!

2. Tariffs: When asked whether "Trump's new tariff policy would force the Fed to cut interest rates early," Powell directly threw out historical data from 1988—during Reagan's era with a 30% automobile tariff, the Fed actually raised rates by 175 basis points, hinting that this time might replicate the "rate hike to combat inflation" script.

3. Iron King: In response to rumors about Trump's team wanting to replace the Fed chair, Powell cited Section 2 of Chapter 10 of the Federal Reserve Act. When a reporter on site pressed him about "considering resigning," he smiled and showed his phone's screensaver—a night view of the Fed building with the caption "My House." Think too much, folks; old Powell won't leave until at least June next year, and no one dares to touch his throne!! Haha