Brothers, I just listened to Powell's speech, which is all about the hard facts related to Federal Reserve policies and the U.S. economy. Don't miss the key points!
First, let's talk about the most explosive issue - the interest rate cut in September is basically greenlit! Powell's original words mentioned that 'the baseline outlook and risk balance have changed, and it may be necessary to adjust the policy stance,' which translates to: there is a high probability of an interest rate cut in September. Why the urgency to cut rates? On one hand, the current U.S. employment market looks alright, but there are already downward risks. If rates are not cut to stimulate the economy, there may be future problems with employment, making it harder for ordinary people to find jobs. On the other hand, there were previous concerns about tariffs pushing up prices, but Powell also said that the impact of tariffs on prices is temporary and won't keep rising, so there’s no need to fear inflation skyrocketing due to rate cuts.