Explosive! Powell warns, is the 2% inflation target about to change? The market erupts in an instant!
Breaking! The Federal Reserve's core policy may shift dramatically! Powell hinted himself: the old rule of focusing on 2% average inflation may need to be discarded!
What exactly happened? In a nutshell:
Powell hinted: future monetary policy will no longer focus on "past average inflation of 2%", but only on "whether current inflation has reached 2%".
Key point interpretation:
🔥 Policy may revert to the old framework before 2019
From "average inflation targeting" back to "current inflation targeting", which is more flexible and realistic.
🔥 Why did U.S. Treasury bonds plummet?
No longer compensating for past high inflation = no need to aggressively suppress future inflation, which means policy may become looser, and the market went wild!
🔥 Is the 2% target really abandoned?
Not yet! Powell stated that we still adhere to 2%, but the future algorithm may not look at history, only the present.
In conclusion:
The Federal Reserve is telling you not to get tangled in the past, just focus on the current trend! Trading is all about living in the moment! Recognize the windfall, and don't fall behind!