This time, Powell not only did not make dovish remarks but even leaned hawkish. Powell stated: he insists on not making any interest rate cuts and has not seen liquidity issues in the markets, system, or banks. He continues to observe the changes and currently does not see the need to rescue the market through interest rate cuts.
Regarding the sharp decline in the US stock market, Powell also stated that he would not intervene but would provide an explanation. After all, Trump is constantly changing, making it difficult to know what caused the troubles. At present, it is too early to conclude that there are problems in the market. He emphasized that the US economy is still in a robust state.
Currently, it can be seen that the new tariff policy is driving short-term inflation, and whether inflation can be sustained depends on three factors: the scale of impact, the duration of transmission to prices, and whether long-term inflation expectations can be firmly anchored.
At present, the Federal Reserve's stance remains primarily one of observation, ensuring a balance between inflation and employment.
However, in this speech, although technology stocks suffered a heavy blow, Powell's remarks praised digital currencies! For the crypto sector, this could be a potentially unsustainable temporary sentiment boost! After all, as he said, Trump's tariffs are variable and beyond expectations!
