Yesterday, Powell also gave a speech. Although it was ambiguous, there was one key statement: during every economic recession, our average interest rate cut is about 500 basis points. Therefore, although being constrained by the lower bound is no longer a basic scenario, we still need to retain a mechanism in the framework to respond to this risk.
That is, as long as the data shows an economic recession, the Federal Reserve will not hesitate to lower interest rates to 0% or even negative, which has proven effective in the past. If there's anything to worry about, just go for it.
I don’t know why many media interpretations are actually that there won't be a rate cut! It feels like the government is deliberately spending money to hire the media to spread this! #CPI数据来袭
