Powell's speech is dovish; a September rate cut is already solidified! 🎉
Brothers, I just listened to Powell's speech, and it's all hard-hitting content linked to Federal Reserve policy and the U.S. economy. Don't miss the key points!
First, let's talk about the most explosive point — the likelihood of a rate cut in September is basically given the green light! Powell mentioned in his original statement that "the baseline outlook and risk balance have changed, and it may be necessary to adjust the policy stance." Translated, this means: a high probability of a rate cut in September. Why the urgency to cut? On one hand, the U.S. job market still looks okay, but there are already downward risks. If they don't cut rates to stimulate, there may be problems with employment later, making it harder for ordinary people to find jobs; on the other hand, people were previously worried that tariffs would push up prices, but Powell also said that the impact of tariffs on prices is temporary and will not keep rising, so there's no need to fear runaway inflation from rate cuts.
