Hahaha, the script of #鲍威尔 was actually stolen by #贝森特 ——

U.S. Treasury Secretary Yellen unusually gave Powell guidance, suggesting a 50 basis point rate cut in September, with a total reduction of 150 to 175 basis points thereafter.

Moreover, it is extremely rare for her to criticize the Bank of Japan for being obviously 'too slow' and suggesting a rate hike.

A Treasury Secretary who should maintain distance from monetary policy is now directly calling out, seeing an analysis that suggests his thinking should be like this——

If we follow Trump's idea of significantly cutting interest rates, capital will also significantly withdraw from U.S. stocks, creating a negative impact.

So it’s best for the U.S. to gradually cut rates while Japan raises rates, continuing to push for a depreciation of the dollar, so that the international profit portion of leading companies, when measured in dollars, can still increase. Leading tech companies can continue to tell a good AI story, ultimately supporting U.S. stocks.

As long as we can keep U.S. stocks afloat until the midterm elections or before the next election, that would be a great achievement!