Powell's speech this time was really hawkish! Just finished speaking, let me highlight the key points for you:
1. Interest rate hike: It's hard to say now whether to adjust the interest rates, let's hold off for now and wait for clearer signals.
2. Economic situation: The US economy is still strong, but excessive imports are dragging it down; this year's growth rate is expected to be slower than last year's.
3. Price trends: The tariffs added by Trump may keep inflation elevated for a long time, with core prices estimated to rise by 2.6% in March.
4. Job market: It's still relatively balanced, but reduced funding for research may impact jobs, with unemployment rates expected to rise.
5. Tariff impact: This round of tax increases is harsher than expected, but it's still uncertain how significant the impact will be.
6. Cryptocurrency: Praising the crypto space for becoming more mainstream, mentioning the need to establish rules for stablecoins, and banking regulation may loosen a bit.
7. Federal Reserve stance: We operate independently, and no one should think they can exert pressure (hinting wildly that we won't take sides in the election year).
8. Final warning: Don’t expect us to bail out the market! However, if the dollar really runs short, central banks can borrow from us.
9. Market reaction: The dollar fell first, then rose and dropped again; US stocks plummeted (the Nasdaq suffered the most at -4%), and gold sneaked up a bit. Interestingly, Bitcoin remained quite stable, probably related to Powell's praise for the crypto space~
