Aunt Daly from the Federal Reserve has come out to speak again! She said that the arrangement of lowering interest rates twice this year is quite appropriate, just right, not too much or too little. However, what she said is quite interesting, it feels like she is practicing Tai Chi.

Aunt Daly is quite satisfied with the decision to lower interest rates in July, feeling it was the right thing to do. But then she added that if the same decision were to come again, she might not be so keen. This statement makes it seem like she is hinting at something.

I pondered whether she meant: lowering rates in July is okay, but we should be cautious moving forward? After all, the current economic situation is so complex, and inflation hasn't fully come down, making it tough for the Federal Reserve folks.

In my opinion, these Federal Reserve officials speak like it’s a riddle, never willing to make a definitive statement. Aunt Daly's remarks neither confirmed that they would continue to lower rates nor that they definitely wouldn’t, leaving herself an escape route. But at least it can be seen that she is still relatively cautious, not wanting to lower the rates too sharply all at once.

Now the market is guessing what the Federal Reserve will do next, with some believing there will be a rate cut in September and others thinking we should wait and see. Aunt Daly's comments are likely to leave the market in a dilemma for a while. In my view, ordinary folks like us might as well stop guessing, since in the end, it’s the Federal Reserve that calls the shots.