Key Interpretation of Powell's Press Conference After the #鲍威尔发言 FOMC Meeting

In the press conference following the September FOMC meeting, Powell made three key statements: 1) The interest rate hike cycle is not over; 2) There will be no rate cuts in 2024; 3) The size of the balance sheet reduction will be halved. He particularly emphasized that the cooling of the real estate market is insufficient, noting that the Case-Shiller home price index is still up 4.3% year-on-year. When asked about the banking crisis, Powell confirmed that new regulations will be introduced, requiring banks with assets over $100 billion to hold more liquid assets. The market reacted sharply, with the 2-year U.S. Treasury yield soaring by 20 basis points in a single day.