猴哥解说家
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Failed Rate Cuts
As a principled Federal Reserve Chairman, Powell is now in a dilemma. The Federal Reserve, as an independent institution, is already struggling to balance inflation and employment, while also facing political pressure from Trump. Therefore, before he steps down next June, he must maintain the balance of domestic inflation and employment. The latest report from the Federal Reserve clearly states (be sure to look at the original text, not the selective or distorted reports from domestic media) that as long as there is no significant decline in U.S. employment, the Federal Reserve will continue to maintain its anti-inflation stance until the inflation rate returns to the established target of 2%.
Thus, the U.S. is currently unwilling to propose rate cuts, and the Federal Reserve will not propose rate cuts.
With the U.S. dollar not cutting rates, it will inevitably constrain the Chinese yuan from cutting rates or lowering the reserve requirement, because the interest rate differential between China and the U.S. has long existed. If the yuan cuts rates or lowers the reserve requirement, it will inevitably exacerbate the behavior of exchanging yuan for dollars to purchase U.S. bonds and stocks.
As a principled Federal Reserve Chairman, Powell is now in a dilemma. The Federal Reserve, as an independent institution, is already struggling to balance inflation and employment, while also facing political pressure from Trump. Therefore, before he steps down next June, he must maintain the balance of domestic inflation and employment. The latest report from the Federal Reserve clearly states (be sure to look at the original text, not the selective or distorted reports from domestic media) that as long as there is no significant decline in U.S. employment, the Federal Reserve will continue to maintain its anti-inflation stance until the inflation rate returns to the established target of 2%.
Thus, the U.S. is currently unwilling to propose rate cuts, and the Federal Reserve will not propose rate cuts.
With the U.S. dollar not cutting rates, it will inevitably constrain the Chinese yuan from cutting rates or lowering the reserve requirement, because the interest rate differential between China and the U.S. has long existed. If the yuan cuts rates or lowers the reserve requirement, it will inevitably exacerbate the behavior of exchanging yuan for dollars to purchase U.S. bonds and stocks.
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