Recently, the stock market has been a bit lively, and Jerome Powell's remarks have given the U.S. stock market a slight boost.
On May 8th at 2 AM, the Federal Reserve announced that interest rates would remain unchanged, still at 4.25% to 4.5%, marking the third consecutive time they have held steady.
In the statement, the Federal Reserve mentioned that both the unemployment rate and inflation risks are rising, which has made everyone a bit anxious.
Afterward, Powell's comments at the press conference attracted widespread attention.
He stated that the Federal Reserve would not take action lightly, and that there might be situations in the future that would warrant a rate cut or continued observation.
Regarding Trump's call for a rate cut, Powell said he was completely unaffected and emphasized that he had never actively sought to meet with the President, nor would he in the future.
Analysts believe that Powell's overall tone was moderate, retaining the possibility of a rate cut while alleviating concerns about the Federal Reserve's independence.
As a result, the three major U.S. stock indices rose collectively in late trading, ending two consecutive days of decline.
It is worth mentioning that in this decision, all voting members supported the pause in interest rate cuts.
The market had actually anticipated this outcome, as various predictions before the meeting showed that the probability of pausing the rate cut was over 99%.
Regarding the economic outlook, Powell pointed out that uncertainty has further increased, especially considering the risks of rising unemployment and inflation simultaneously.
He stated that it is currently unclear which risk is greater and that further observation is needed.
He also mentioned the impact of trade policies, believing that if tariffs remain unchanged, it could slow down economic growth and potentially lead to a rise in long-term inflation.
As for the future direction of monetary policy, Powell did not provide a clear answer, only saying that they would wait until June to assess the situation.
However, he emphasized the resilience of the U.S. economy, expecting that first-quarter GDP data would be revised upward.
Finally, due to the news, technology stocks performed well, particularly with significant gains in companies like Nvidia and Qualcomm.
In contrast, Chinese concept stocks generally fell, with the Nasdaq Golden Dragon China Index dropping over 2%.
The current market generally expects the Federal Reserve may cut rates in the second half of this year, but the specific timing will depend on the economic situation.
