Friends, have you all carefully considered Powell's recent speech? The statements from this Fed leader may be much more important than the market's current reaction!

In his latest speech, he revealed that they are comprehensively evaluating the monetary policy framework since 2020. The most critical signal is: the "era of cheap money" that we have taken for granted may really be coming to an end.

I wonder if you have noticed that the Fed has shown unprecedented composure this time. The PCE inflation indicator has already fallen below 3%, and according to past scripts, they should have been discussing interest rate cuts by now. But this time, they are holding steady, repeatedly emphasizing the need for "more data support."

This policy shift is quite interesting. Compared to the "rocket-propelled" monetary easing during the pandemic in 2020, the Fed now resembles an old captain who has suddenly become cautious—despite the winds and waves calming down, he still refuses to accelerate the ship.

From the perspective of the monetary policy framework, this may indicate that the Fed is redefining its inflation target regime. They might believe that the 2% inflation target needs to be re-examined, or that monetary policy should take financial stability factors into greater consideration.

What do you all think? Is this a temporary policy pause or a fundamental paradigm shift? Feel free to share your professional insights in the comments section. If you want to keep track of the Fed's policy developments, consider following us, as we will provide deeper policy interpretations and market analysis in the future. #美国PPI数据来袭