Powell Reiterates Wait-and-See Position, Does Not Rule Out Possibility of Rate Cut in July 🔥🔥🔥🔥

Federal Reserve Chairman Powell reiterated on Tuesday that stable economic activity allows the Fed to conditionally wait to observe the impact of tariff increases on prices and economic growth before deciding whether to restart rate cuts. "We just need some time," Powell said at the European Central Bank meeting held in Portugal, "As long as the U.S. economy is in good shape, we think the prudent approach is to wait and further understand what those impacts might be." This meeting brought together central bank leaders from Europe, the U.S., and Asia.

In recent weeks, investors' expectations for at least two rate cuts by the Fed in the second half of the year have heated up, as inflation data for April and May came in more moderate than some economists had expected. However, Powell declined to make predictions about the Fed's meeting at the end of the month, stating that the economic outlook will determine the decision-making.

Powell stated that it is impossible to assert whether a rate cut in July would be premature. He said, "I would not rule out any meeting (the possibility of a rate cut), nor will I directly determine that a specific meeting will take action."

Following these remarks, financial markets increased bets that the Fed might begin to cut rates as early as this month. Short-term interest rate futures indicate that the likelihood of a rate cut at the Fed's July meeting is about one in four, up from less than one in five previously. #特朗普马斯克分歧 $BTC